Answer Happy

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2020, of $2,550. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. December 31, 2020 Accounts Receivable $175,000 50,000 12,000 2,700 View transaction list Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Journal entry worksheet Record the estimate for uncollectible accounts. Expected Percentage Uncollectible 1% 4% 10% 60%

tc raw b. During 2021, credit sales were $1,460,000; sales discounts taken were $28,000; accounts receivable collected were $1,245,700; and accounts written off during the year totalled $29,000. Prepare the adjusting entry required on December 31, 2021, to estimate uncollectible receivables assuming it is based on the following aging analysis. December 31, 2021 Accounts Receivable. $290,000 89,000 26,000 20,000 View transaction list Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Journal entry worksheet Record the estimate for uncollectible accounts Note Enter debita before credits Date December 31, 2021 General Journal Expected Percentage Uncollectible Debit 1% 4% 10% 60% Credit

c. Show how accounts receivable would appear on the December 31, 2021, balance sheet. Assets Current assets Partial Balance sheet