nework Required informetion (The following information applies to the questions

Question

nework Required informetion (The following information applies to the questions displayed below] Jarden Company has credit sales of $3,000,000 for year 2017 On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $18.420. Jarden prepares a schedule of ts December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age categ that will become uncollectible. This information is summarized here. Age of Accounts Receivable 1, 2017 ercen 240,000 48,009 24,000 4,800 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 0.85% 1.60 6.10 30.75 64.00 repare the adjusting entry to record bad debts expense at December 31, 2017

Explanation / Answer

Ans. Age of Accounts Percent Estimated Accounts rec. receivables uncollectible uncollectible not due 600000 0.85% 5100 1 - 30 days 240000 1.60% 3840 30 - 60 48000 6.10% 2928 60 - 90 24000 30.75% 7380 over 90 4800 64% 3072 Estimated Balance of allowance for Uncollectible 22320 No Date General journal debit Credit 1 31-Dec Bad debts expense 3900 Allowance for doubtful accounts 3900 * Adjustment = Estimated balance - unadjusted balance 22320 - 18420 3900

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