Entry for Uncollectible Accounts Outiaw Bike Co. is a wholesaler of motorcycle s

Question

Entry for Uncollectible Accounts Outiaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are given below Estimated Uncollectible Accounts Percent Estimated Uncollectible Accounts Amount Age Interval Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due Total Balance $708,000 77,900 35,400 25,500 18,400 13,500 $878,700 3/4 % $5,310 3,116 2,124 3,825 7,176 9,450 $31,001 15 39 70 the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of ss,580 as of December 31 ournalize the adjusting entry for uncollectible accounts as of December 31. Dec. 31

Explanation / Answer

Adjusting entry :

Date accounts & explanation debit credit Dec 31 Bad debt expense (31001+5580) 36581      Allowance for doubtful accounts    36581 (TO record adjusting entry)

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