Question

e basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. ng the age of each account counts X i Data Table Age of Accounts 31-60 Days Over 90 Days 1-30 Days 61-90 Days 25,000 Accounts Receivable 75,000 $ 15,000 $ 70,000 $ Estimated percent uncollectible 0.5% 3.0 % 9.0 % 50.0 % Done Print Print Done

Answer 1

estimated bad debts for the year 2018

[70000*0.5%]+[75000*3%]+[ 15000*9%]+[25000*50%]

= 350+2250+1350+12500

=$16450 ending balance required

Allowance for bad debts accounts has credit balance normally.

T account of allowance for bad debt.

	debit	Credit
Beginning Balance	$14950	$31400	Balance adjusted
		$16450	ending balance Balance

Journal entry

		Debit	Credit
December 31	Bad debts	31400
	allowance for doubtful account		31400

2.BALANCE SHEET

Asset
Account receivable	$185,000
Less: Allowance for doubtful debt	($16,450)
Net account receivable	$168550