Answer Happy

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2020, of $1,900. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. Expected Percentage Uncollectible 1% 4% 10% 60% December 31, 2020 Accounts Receivable. $127,000 37,000 8,500 2,100. 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.

b. During 2021, credit sales were $1,252,000; sales discounts taken were $23,000; accounts receivable collected were $1,040,600; and accounts written off during the year totalled $25,000. Prepare the adjusting entry required on December 31, 2021, to estimate uncollectible receivables assuming it is based on the following aging analysis. Expected Percentage Uncollectible 1% 4% December 31, 2021 Accounts Receivable $250,000 78,000 21,000 12,000 View transaction list Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past duel Over 60 days past due Journal entry worksheet Record the estimate for uncollectible accounts. 10% 60%

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