Question

At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Solar Power Manufacturing, Inc., is $330,000. The Allowance for Uncollectible Accounts has a[n) $18,000 credit balance. Solar Power Manufacturing prepares the following aging schedule for Accounts Receivable: Click the icon to view the aging schedule.) Read the requirements Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? First, calculate a revised allowance for uncollectible accounts amount and the adjusting entry amount (Round to the nearest dollar.) Allowance for Uncollectible Accounts: Credit balance needed 1-30 31-60 61-90 Over 90 Subtotal Choose from any list or enter any number in the input folds and then continue to the next question Sample Tests and Quirzes Attempts

Answer 1

balance uncollectibles 1--30 $ 130,000 0.50% 31--60 $ 100,000 2.00% 61--90 $ 70,000 7.00% over 90 $30,000 50.00% subtotal less: unadjusted balance adjusting entry amount credit balance needed $ 650 $ 2,000 $ 4,900 $ 15,000 $ 22,550 $ 18,000 $4,550 $ 22,550 the credit balance at december 31 in allowance for uncollectibles should be the current balance is $ 18,000 thus, the current balance of the account is $4,550 short

date L account titles and explanation debit credit $ 4,550 31 December 2018 bad debts expense allowance for uncollectible accounts $ 4,550

allowance for uncollectible accounts beginning balance bad debts expense ending balance $ 18,000 $ 4,550 $ 22,550

current assets accounts receivable, net $ 307,450 detailed presentation accounts receivable $ 330,000 less: allowance for uncollectible accounts | $ 22,550 accounts receivable, net $ 307,450

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