P5-67A. (Learning Objective 4: Using the aging approach for uncollectibles) The September 30, 20X7, records of Effective Communications include these accounts:

At year-end (December 31), the company ages its receivables and adjusts the balance in Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 20X7, the company completed the following selected transactions:

Requirements 1. Record the transactions in the journal. Explanations are not required.
2. Prepare a T-account for Allowance for Doubtful Accounts and post to that account.
3. Show how Effective Communications will report its accounts receivable on its Balance Sheet at December 31, 20X7.

Transcribed Image Text:

Accounts Receivable.. $270,000 Allowance for Doubtful Accounts. (9,100)