An aging analysis of Reiko Limited's accounts receivable at December 31, 2018 and 2017, showed the following:

Additional information:
1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $3,000.
2. In 2018, $28,000 of accounts were written off as uncollectible and $3,000 of accounts previously written off were recovered.
Instructions
(a) Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2017 and 2018. Note that the estimated percentages uncollectible are the same for both years. Comment on the results.
(b) Record the adjusting entry relating to bad debts on December 31, 2017.
(c) Record the write off of uncollectible accounts in 2018.
(d) Prepare the adjusting entry relating to bad debts on December 31, 2018.
(e) Calculate the carrying amount of Reiko's accounts receivable at December 31, 2017 and 2018.

Transcribed Image Text:

Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible 2018 2017 0-30 days 31-60 days 61-90 days Over 90 days Total 3% 6% 12% 20% $240,000 $220,00o 104,00086,00o 62,00052,000 34,000 22,000 $440,000 $380,00o