Question

A company has the following balances on December 31, 2021, before any year-end adjustments: Accounts Receivable = $79,000; Allowance for Uncollectible Accounts = $1,300 (credit). The company estimates uncollectible accounts based on an aging of accounts receivable as shown below: Ace Group Not yet due - 30 days past due 31 - 90 days past due More than 90 days past due Total Estimated Amount Percent Receivable Uncollectible $42,000 4% 22,080 28% 13,800 40% 2.000 85% $79,800 Record the adjustment for uncollectible accounts on December 31, 2021 (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < Record the adjustment for uncollectible accounts. Note: Enter debits before credits Date General Journal Dec 31, 2021 Debit Credit < Prey o search 48 of 57 Hi! Next >

Answer 1

А E F G K 1 Credit ($) =D7-1300 B C D Uncollectiable Accounts Amount Receivable Estimated Percent Uncollectible Uncollectiable $ 42.000 4% $ 1.680 $ 22.000 20% $ 4,400 $ 13,000 40% $ 5,200 $ 2,000 85% $ 1,700 $ 79,000 $ 12,980 2 Age Group 3 Not yet due 4 0 - 30 days past due 5 31 - 90 days past due 6 More than 90 days past due 7 Total 8 H Journal Entries Date Account Titles Debit ($) 12/31/2021 Bad Debt Expense $ 11,680 Allowance for Uncollectiable Accounts (To record the adjustment for uncollectiable) As, there is already balance in allowance for uncollectible accounts, we deduct the amount and pass the adjusting entry for the balance amount $ 11,680

А B 1 Uncollectiable Accounts 2 Age Group Amount Receivable Estimated Percent Uncollectible Uncollectiable 3 Not yet due 42000 0.04 =B3*C3 4 0 - 30 days past due 22000 0.2 =B4*C4 5 31 - 90 days past due 13000 0.4 =B5*C5 6 More than 90 days past due 2000 0.85 =B6*C6 7 Total =SUM(B3:B6) =SUM(D3:D) 8

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