Question

Required information Problem 9-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below.) Jarden Company has credit sales of $2,500,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,900. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. December 31, 2017 Accounts Receivable $ 500,000 200,000 40,000 Expected Percent Uncollectible 1.00% 1.75 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 6.25 31.50 20,000 4,000 65.00

Answer 1

Account Receivable A. Not due: $500,000 1 to 30: $200,000 31 to 60: $40,000 61 to 90: $20,000 Over 90: $4,000 Estimated balance of allowance for uncollectibles Percent Uncollectible B. 1.00% 1.75% 6.25% 31.50% 65.00% Total Estimated Uncollectible A. * B. $5,000 $3,500 $2,500 $6,300 $2,600 $19,900 Date To Record Estimated Bad Debts General Journal Bad debt expense ($19,900 - $14.900) Allowance for doubtful accounts Debit Credit $5,000 $5,000 Dec 31

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