On December 31, 2016, the Accounts Receivable balance of TDS Distribution, Inc., is $194,000. The Allowance for

Question:

On December 31, 2016, the Accounts Receivable balance of TDS Distribution, Inc., is $194,000. The Allowance for Uncollectible Accounts has a $1,200 credit balance. TDS Distribution, Inc., prepares the following aging schedule for its accounts receivable:

Age of Accounts 61-90 31-60 Over 90 1-30 Days $110,000 Days Days $25,000 Days Accounts Receivable.. Estimated Percentage

Requirements
1. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2016.
2. Assume that instead of a $1,200 credit balance, there is a $700 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on December 31, 2016?

Aging Schedule
Aging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...