Question

Revise your worksheet to reflect these updated assumptions then answer the questions that follow You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company of year end. Estimated Percent Uncollectible Age Group Not yet due 1-30 days bast due 31-50 days past due 51.90 days past due Over 90 days past due Accounts Receivable $ 80,00 35,000 18. 12,000 13,000 3158,000 20 40 Allowance for Uncollectible Accounts 1.600 Create < Prey 10 of 17 I N

Answer 1

Solution:

Requirement 1:

Accounts Receivables	$         147,917
Allowance for Uncollectible Accounts	$           28,233

Working:

Age Group	Accounts Receivable	Revised Accounts Receivable(a)	Calculation	Percent Uncollectible (b)	Uncollectible (a*b)
Not due:	$                                            80,000	$                                                  66,667	$ 80,000 / 120 * 100	5%	$                         3,333
1-30 days past due	$                                            35,000	$                                                  35,000	Same	10%	$                         3,500
31-60 days past due	$                                            18,000	$                                                  18,000	Same	20%	$                         3,600
61-90 days past due	$                                            12,000	$                                                  12,000	Same	40%	$                         4,800
Over 90 days past due	$                                            13,000	$                                                  16,250	$13,000 / 80 * 100	80%	$                       13,000
Total		$                                                147,917			$                       28,233

note:

1) In question, it is given that accounts receivable needs some adjustments, so there are made accordingly.

Requirement 2:

Transaction	General Journal	Debit	Credit
1	Bad Debts Expense	$           29,833
	Allowance for Uncollectible Accounts		$           29,833
	(Being bad debts expense)

Working:

Allowance for Uncollectible Accounts
Beg. Balance	$ 1,600
		Bad Debts ( Balancing Figure)	$ 29,833
		End Balance	$ 28,233

Notes:

1) It is given that balance of Allowance for Uncollectible Accounts given in the question is debit balance.

2) Amounts are round off to nearest whole dollar.