On July 31, 2015, the Accounts Receivable balance of Questor Application, Inc. is $320,000. The Allowance for

Question:

On July 31, 2015, the Accounts Receivable balance of Questor Application, Inc. is $320,000. The Allowance for Doubtful Accounts has a $6,400 credit balance. Questor prepares the following aging schedule for its accounts receivable:

Age of Accounts Over 90 Days $15,000 60% 31-60 1-30 61-90 Days $60,000 5.0% Days $175,000 Days $70,000 Accounts Receivab

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 July 31, 2015.
2. Assume that instead of a $6,400 credit balance, there is a $500 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 July 31, 2015.

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...