AGING ACCOUNTS RECEIVABLE Company as of December 31, 20-, reveals the following:

Question

AGING ACCOUNTS RECEIVABLE Company as of December 31, 20-, reveals the following: Ke TABLE An analysis of the counts receivable of Johnson Age Interval Estimated Percent Uncollectible Balance Not yet due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due 181-365 days past due Over 365 days past due Total 2% $65,000 4,500 3,550 1,650 1,200 650 400 10 25 35 85 $76,950 REQUIRED 1. Prepare an aging schedule as of December 31, 20-, by adding the following col- umn to the three columns shown above: Estimated Amount Uncollectible. 2. Assuming that Allowance for Doubtful Accounts had a credit balance of $620 before adjustment, record the end-of-period adjusting entry in general journal form to enter the estimate for uncollectible accounts.

Explanation / Answer

Age Interval Balance Estimated Percent Uncollectible Estimated Amount Uncollectible Not yet due 65000 2% 1300 1-30 days past due 4500 5% 225 31-60 days past due 3550 10% 355 61-90 days past due 1650 25% 412.5 91-180 days past due 1200 35% 420 181-365 days past due 650 55% 357.5 Over 365 days past due 400 85% 340 Total 76950 3410 2 Bad debts expense 2790 =3410-620        Allowance for doubtful accounts 2790

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