Question

* Exercise 249 Erickson Company had a $300 balance in Allowance for Doubtful Accounts at December 31, 2017, before the current year's adjustment for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible 1% Current Accounts 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $170,000 15,000 12,000 5,000 9,000 $211,000 6 % 15 % 30 % Calculate the estimated total uncollectable amount. Estimated total uncollectable amount Using a tabular summary, enter the unadjusted balances. In Accounts Receivable and Allowance for Doubtful Accounts, and record Bad Debt Expense at December 31, 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Assets - Liabilities + Stockholder's Equity Retained Earnings Rev. . Exp. - . Allow. For Doubt. Accounts - Accounts Receivable + Accounts Payable Common Stock Unadj. Bal. Dec. 31 Bad debt expense

Answer 1

Answer

• Estimated total uncollectible amount
  = (170000 x 1%) + (15000 x 3%) + (12000 x 6%) + (5000 x 15%) + (9000 x 30%)
  = 1700 + 450 + 720 + 750 + 2700
  = $ 6,320
• Summary

	Accounts receivables	Allowance for Doubt Accounts	Accounts Payable	Common Stock	Revenues	Expenses	Dividend
Unadjusted balance	$211,000	$300
Dec-31		$6,020				$6,020		Bad Debt expense [$ 6320 – 300]
	$211,000	$6,320	$0	$0	$0	$6,020