Question

At December 31, 2018, the Accounts Receivable balance of Alpha Company is $145,000. The Allowance for Bad Debts account has a $15,235 debit balance. Alpha Company prepares the following aging schedule for its accounts receivable: (Click the icon to view the aging schedule.) Read the requirements. Requirement 1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. Begin by determining the target balance of Allowance for Bad Debts by using the age of each account Age of Accounts Accounts Receivable 1-30 Days 55,000 0.7% 385 31-60 Days $ 40,000 4.0% $ 1,600 $ _ $ 6 1-90 Days $ 20,000 5.0% $ 1,000 Total Balance $ 145,000 Over 90 Days $ 30,000 48.0 % $ 14,400 Estimated percent uncollectible $ 17,385 Estimated total uncollectible Journalize the year-end adjusting entry for doubtful accounts on the basis of the aging schedule. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Choose from any list or enter any number in the input fields and then click Check Answer. parts Clear All 2 remaining Check An

Answer 1

Date	account title and explanation	Debit	Credit
Dec 31	Bad debt expense (15235+17385)	32620
	Allowance for doubtful accounts		32620
	(To record adjusting entry)