Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance...

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.

Accounts not yet due = $402,000; estimated uncollectible = 10%.
Accounts 1–30 days past due = $50,300; estimated uncollectible = 14%.
Accounts 31–90 days past due = $40,200; estimated uncollectible = 18%
Accounts more than 90 days past due = $30,100; estimated uncollectible = 22%.

At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $20,300 in its allowance for uncollectible accounts.

Required:
1. Estimate the appropriate 12/31/2021 balance for Zuo’s allowance for uncollectible accounts.
2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts?
3. Calculate Zuo’s 12/31/2021 net accounts receivable balance.

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ekkarill92 answered 2 years ago

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