At the end of the year, a company has the following accounts receivable and estimates of...

At the end of the year, a company has the following accounts receivable and estimates of uncollectible accounts:

1. Accounts not yet due = $76,000: Estimated uncollectible = 7%

2. Accounts 1-30 days past due =$39,000' estimated uncollectible = 25%

3. accounts more than 30 days past due = $7,000; estimated uncollectible = 45%

Record the year-end adjustment for uncollectible accounts, assuming the current balance of the Allowance for Uncollectible accounts is (1,800 (debit)

Record the bad debt expense

Expert Solution

	Accounts receivable		Percent uncollectible		Estimated Uncollectible
Not yet due	$ 76,000	x	7%	=	$ 5,320
1 to 30 Days past due	$ 39,000	x	25%	=	$ 9,750
Over 30 days	$ 7,000	x	45%	=	$ 3,150
Estimated balance of allowance for uncollectibles					$ 18,220

Journal entry

Baddebt expenses ($18,220+$1,800)	$ 20,020
Allowance for doubtful accounts		$ 20,020

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ekkarill92 answered 1 year ago

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At the end of the year, a company has the following accounts receivable and estimates of...

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