Question

Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 The following information applies to the questions displayed below.] 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 $14,904. 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. December 31, 2017 Accounts Receivable $ 4B0.000 192.000 38,400 19,200 3.840 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.00% 1.75 6.25 31.50 65.00 Problem 9-3A Part 1 Required: 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method. Estimated Uncollectible Accounts Percent Receivable Uncollectible (#.##%) Not due: 1 to 30: 31 to 60: 61 to 90: Over 90: Estimated balance of allowance for uncollectibles

Answer 1

Age of accounts			31-Dec			Expected percent		Estimated
receivable			Account receivable			uncollectible		bad debts
not yet due			480,000			1%		4800
1 to 30 days past due			192,000			1.75%		3360
31 to 60 days past due			38,400			6.25%		2400
61 to 90 days past due			19,200			31.50%		6048
over 90 days past due			3,840			65%		2496
total estimated bad debts								19104
			Date	General Journal		Debit	Credit
			31-Dec	Bad debts expense		4200
				Allowance for uncollectible accounts			4,200
				(19104-14,904)