Aging Accounts Super Products Corporation had a balance in its accounts receivable account at December 31, 2000, of $120,000 and a $4,000 balance in its allowance for uncollectible accounts. During 2001, the company sold equipment on credit in the amount of

$820,000. Total cash collections during 2001 were

$790,000. The company also determined that $5,000 of accounts would not be collected, and it wrote them off. At the end of 2001, Super Products prepared the following aging schedule:

When you receive this information, you are asked to:

a. Identify the accounts and the amounts that would be used by Super Products during 2001 to record its credit sales.

b. Present the journal entry to record collection of the payments received.

c. Identify the effects of writing off the $5,000 of bad accounts during 2001.

d. Compute the proper balance that should be reported in the allowance for uncollectible accounts at December 31, 2001, using the aging schedule. Also, show how the accounts would be adjusted to recognize bad debt expense for 2001.

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Accounts Estimated Length of Receivable Time Outstanding Balance Uncollectible Percentage Less than 30 days $80,000 1 31 to 60 days 30,000 3 61 to 90 days 20,000 8 More than 90 days 15,000 10