Question

 At December 31, 2017, Hawke Company reports the following results for its calendar year.

 In addition, its unadjusted trial balance includes the following items.

 Required:

 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method.

 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a.

 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1c.

 Jarden Company has credit sales of $2,400,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,160. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

 2. Prepare the adjusting entry to record bad debts expense at December 31, 2017.

Answer 1

1	Required balance of Alowances for doubtfull accounts
		Accounts Receivable	Percent Uncollectible	Estimated Uncollectible
	Not Due	480000	0.90%	4320
	1 to 30	192000	1.65%	3168
	31 to 60	38400	6.15%	2361.6
	61 to 90	19200	31.00%	5952
	Over 90	3840	64.00%	2457.6
				18259.2
	Journal Entry
	Bad Debt A/c Dr.	18259.2
	To Allowance for doubtfull accounts		18259.2
2
	Current Assets:
	Accounts Receivable	1120191
	Less: Allowances for doubtfull accounts	-179.2
	Total	1120012