A partially completed aging of receivables schedule for Lindy Designs' is shown below. Calculate the amount that is estimated to be uncollectible.
Age Interval: |
Balance: |
Percentage: |
Amount: |
Not past due |
550,000 |
2.50% |
1~30 days past due: |
96,500 |
4.00% |
31~60 days past due: |
43,750 |
9.50% |
61~90 days past due: |
22,250 |
16.00% |
91~180 days past due: |
5,600 |
31.00% |
181~365 days past due: |
3,100 |
60.00% |
Over 365 days past due: |
1,250 |
95.00% |
Total: |
722,450 |
Required:
(a) |
Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. |
(b) |
If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year. |
(c) |
If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year. |