Applying the allowance method (aging of accounts) to account for uncollectibles [10 min]Su...

Applying the allowance method (aging of accounts) to account for uncollectibles [10 min]

Summer and Sandcastles Resort had the following balances at December 31, 2012, before the year-end adjustments:

The aging of accounts receivable yields the following data:

Requirements

1. Journalize Summer’s entry to adjust the allowance account to its correct balance at December 31, 2012.

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2. Prepare a T-account to compute the ending balance of Allowance for uncollectible accounts.