Question

A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible.

		Est. Uncollectible Accounts
Age Interval	Balance	Percentage	Amount
Not past due	$550,000	2.50%
1—30 days past due	96,500	4.00%
31—60 days past due	43,750	9.50%
61—90 days past due	22,250	16.00%
91—180 days past due	5,600	31.00%
181—365 days past due	3,100	60.00%
Over 365 days past due	1,250	95.00%
Total	$722,450		Required: a. Determine the amount estimated to be uncollectible by completing the aging of receivables schedule.* b. If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.** c. If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.** *Round your answers to the nearest dollar. **Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar. X General Journal b. If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 c. If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2

Answer 1

Lindy Designs Reqa Amount estimated to be uncollectible 30,110 Age Interval Not past due 1-30 days past due 31-60 days past due 61–90 days past due 91–180 days past due 181–365 days past due Over 365 days past due Total Balance 550,000 96,500 43,750 22,250 5,600 3,100 1,250 722,450 Est. Uncollectible Accounts Percentage Amount 2.50% 13,750 4.00% 3,860 9.50% 4,156 16.00% 3,560 31.00% 1,736 60.00% 1,860 95.00% 1,188 30,110 Calculation =550,000*2.50% =96,500*4% =43,750*9.50% =22,250*16% =5,600*31% =3,100*60% =1,250*95% Reqb JOURNAL DATE DESCRIPTION POST. REF. DEBIT 31-Dec Bad debt expense 20,410 Allowance for Doubtful Accounts J1 ACCOUNTING EQUATION CREDIT A SSETS LIABILITIES EQUITY Calculation (20,410) =30,110-9,700 20,410 (20,410) Reqc JOURNAL DATE DESCRIPTION POST. REF. DEBIT 31-Dec Bad debt expense 39,810 Allowance for Doubtful Accounts J1 ACCOUNTING EQUATION CREDIT A SSETS LIABILITIES EQUITY (39,810) =30,110+9,700 39,810 (39,810)