Problem: Wright Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
|
Days Past Due
|
|
Total
|
0
|
Jan-30
|
31-60
|
61-90
|
over 90
|
|
Accounts receivable
|
1,109,000
|
411,000
|
105000
|
515000
|
33,000
|
45000
|
|
Percent uncollectible
|
|
1%
|
2%
|
5%
|
7%
|
10%
|
a) Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method.
b) Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,100 credit.
c) Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit.
Accounts Receivable $ Percent Uncollectible (%) %
Not due: x =
1 to 30: x =
31 to 60: x =
61 to 90: x =
Over 90: x =
Estimated balance of allowance for uncollectibles
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5,100 credit.
Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,600 debit.
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Attachment:- Template-Receivable Aging.rar