Question

Check my work 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 $2,100,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,706. 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 $ 420,000 168,000 33,600 16,800 3,360 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 1.408 2.15 6.65 33.50 70.00 Problem 9-3A Part 2 2. Prepare the adjusting entry to record bad debts expense at December 31, 2017

Answer 1

rate positively ..

	i	ii	iii=i*ii
December 31
Account receivable	Balance	Estimated Uncollectible Accounts Percent	Estimated uncollectible accounts amount
Not past due	420000	1.40%	5,880
1-30 days past due	168000	2.15%	3,612
31-60 days past due	33600	6.65%	2,234
61-90 days past due	16800	33.50%	5,628
Over 90 days past due	3360	70.00%	2,352
Total			19,706
Beginning balance=			15,706
Amount required =			4,000
	Journal entry
	Date	Account	Dr	Cr
	Dec 31	Bad debt	4,000
		Allowance for doubtfull accounts		4,000