Problem 4 A summary of London Fashion\'s December 31, 2016, accounts receivable

Question

Problem 4 A summary of London Fashion's December 31, 2016, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group: Age Group 0-60 days 61-90 days 91-120 days over 120 days Amount $40,000 15,000 2,000 800 .5 1.5 15.0 80.0 The allowance for uncollectible accounts had a balance of $1,600 at January 1, 2016. During the year bad debts of $1,150 were written off Required: Prepare all 2016 journal entries with respect to bad debts and the allowance for uncollectible accounts.

Explanation / Answer

Uncollectible amount = accounts receivable * percentage of uncollectible

Journal entries

Age group Amount % Uncollectible amount 0-60 days $   40,000 0.50% $                                      200 61-90 days $   15,000 1.50% $                                      225 91-120 days $     2,000 15.00% $                                      300 Over 120 days $         800 80.00% $                                      640 Total uncollectible amount $                                  1,365

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.