Question

Below is the aging of receivables schedule for Evers Industries.

Aging-of-Receivables Schedule November 30
Customer	Balance	Not Past Due	1-30 Days Past Due	31-60 Days Past Due	61-90 Days Past Due	Over 90 Days Past Due
Subtotals	788,100	465,000	173,400	70,900	39,400	39,400
Boyd Industries	12,000					12,000
Hodges Company	21,600				21,600
Kent Creek Inc.	6,300			6,300
Lockwood Company	8,100		8,100
Van Epps Company	25,700	25,700
Totals	861,800	490,700	181,500	77,200	61,000	51,400
Percentage uncollectible		1%	6%	25%	35%	50%
Allowance for Doubtful Accounts	82,147	4,907	10,890	19,300	21,350	25,700

Assume that the allowance for doubtful accounts for Evers Industries has a credit balance of $ 17,250 before adjustment on July 31.

Journalize the adjusting entry for uncollectible accounts as of July 31.

July 31

Answer 1

	Allowance for doubtful accounts required as per Ageing schedule=$ 82147
	Current balance in allowance for doubtful accounts=$ 17250 credit
	Adjustment required=82147-17250=$ 64897
	Date	Account titles					Debit	Credit
	July 31.	uncollectible accounts expense					64897
		Allowance for doubtful accounts						64897
		(Adjusting entry uncollectible accounts)