Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Performance Bike Co.
Question:
Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Performance Bike Co. had a debit balance of $28,400 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31.
Exercise 9-11
Performance Bike Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31 and historical analysis of the percentage of uncollectible accounts in each age category are as follows:
Transcribed Image Text:
Percent Uncollectible Age Interval Balance Not past due $3,250,000 0.8% 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days past due Over 180 days past due 1,050,000 2.4 780,000 7.0 320,000 18.0 240,000 34.0 150,000 85.0 $5,790,000
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Related Book For
Financial Accounting
ISBN: 9781337913102
16th Edition
Authors: Carl S. Warren, Christine Jonick, Jennifer Schneider
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