Answer Happy

You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end. Estimated Percent Accounts Receivable Uncollectible Age Group Not yet due 1-30 days past $ 88,000 5% 39,000 due 10% 31-60 days past due 26,000 208 61-90 days past 20,000 40% due Over 90 days past due 17,000 80% $190,000 Allowance for Uncollectible. Accounts: 2,000 Credit
After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days" category is understated and needs to increase by 20%. Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. Required: * 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? ces Accounts Receivable Allowance for Uncollectible Accounts
es Journal entry worksheet 1 Record the bad debt expense for the period based on the estimate of uncollectible accounts. Note: Enter debits before credits. General Journal Debit Transaction 1 Bad Debt Expense Allowance for Uncollectible Accounts Clear entry Record entry Credit View general journal