Question

Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $580,000. Of this amount, $70,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided below. Age Group Not yet due 0-90 days past due 91-180 days past due More than 180 days past due Total Amount Receivable $30,000 15,000 10,000 15,000 $70, eee Estimated Percent Uncollectible 5% 10% 30% sex 2. Record the December 31, 2021, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $4,000 (credit (if no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

@ Recording the adjusting enday for uncollectible accounts Dale General Journal Debrid Der:31 Bad debl expense $ 14000 Allowance for uncollectible account Cooded 2021 $ 14000 Estimated Uncollectible Explanations * Allowance for uncollectible accountsclimbed Age group Home se Receivaba pencernalible amount fible Not yerelve, f 30000 X 545 $ 1500 0-90 days part $ 15000 X 10% = $ 1500 91-18 Pegle due $ 10,000 X 301 = $ 3000 More than - 180 days. | Past due . $ 15000 X 801. - $12000 $ 70,000 $ 18000 SUC * Bad dabf expenses = ( $18000 – $ 4000 ) = f 14000