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Question 12. Empire Bridal Boutique has a credit balance of $620 in its allowance for bad debts account as of December 31, 2016. An analysis of the accounts receivable of Empire Bridal Boutique as of the same date, reveals the following Age Interval Not due 1-30 days past due 31-60 days past due Over 60 days past due Est. Percentage Uncollectible 2% 5% 11% 40% Balance 63,000 7,100 6,300 2,900 Required: 1 Prepare an aging schedule as of December 31, 2016 2 Prepare the adjusting entry to record the Bad Debt Expense at the end of the year. Age Interval Balance Estimated Percentage Amount Estimated as Not due $63,000 2% 1-30 days past due | 140 days past due | Over 60 days past due! Total 7100|596 6300|1190 2,900|4090 $79,300 Post Ref Debit Credit Description Adjusting Entries Date Dec 31

Answer 1

Age interval	Balance[A]	estimated % uncollectible[B]	Amount estimated as uncollectible[A*B]
not due	63000	2%	1260
1-30	7100	5%	355
31-60 days	6300	11%	693
over 60 days	2900	40%	1160
Total	79300		3468

2)

Date	Account	Debit	credit
31dec	Bad debt expense	2848
	Allowance for Bad debt account		2848
	[being bad debt expense recorded 3468-620 credit balance in allowance]