Question

This is part 1-4 of the same problem, not separate problems.
Required Information [The following information applies to the questions displayed below.) Part 1 of 4 1.66 points Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021. Pearl provides services on account of $573,000. Of this amount, $63,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided below. Estimated Percent Uncollectible 5% Amount Receivable $23,000 14,309 9,300 16,400 $63,080 Age Group Not yet due 8-98 days past due 91-180 days past due More than 180 days past due Total 15% 20% 85% print References Required: 1. Calculate the allowance for uncollectible accounts. Age Group Estimated Amount Uncollectible Not yet due 0-90 days past due 91-180 days past due More than 180 days past due Total 0

Answer 1

1) Allowance for uncollectible accounts

Days	Amount of uncollectible
Not yet due	23000*5% = 1150
0-90 days	14300*15% = 2145
91-180 days	9300*20% = 1860
Over 180 days	16400*85% = 13940
Total	19095

2) Adjusting entry

Date	account and explanation	Debit	Credit
	Bad debt expense (19095-3300)	15795
	Allowance for doubtful accounts		15795

3) Journal entry

Date	account and explanation	Debit	Credit
July 19	Allowance for doubtful accounts	6300
	Account receivable		6300

4) Journal entry

Date	account and explanation	Debit	Credit
Sep 30	Account receivable	6300
	Allowance for doubtful accounts		6300
	cash	6300
	Account receivable		6300