Unifying Concepts: Aging of Accounts Receivable and Uncollectible Accounts Capital Edge Company has found that, historically, 0.5% of its current accounts receivable, 3% of accounts 1 to 30 days past due, 4.5% of accounts 31 to 60 days past due, 8% of accounts 61 to 90 days past due, and 10% of accounts over 90 days past due are uncollectible. The following schedule shows an aging of the accounts receivable as of December 31, 2009:

The balances at December 31, 2009, in selected accounts are as follows. (Assume that the allowance method is used.)

Required:
1. Given these data, make the necessary adjusting entry (or entries) for uncollectible accounts receivable on December 31, 2009, on Capital Edge’s books.
2. On February 14, 2010, Shannon Johnson, a customer, informed Capital Edge Company that she was going bankrupt and would not be able to pay her account of $89. Make the appropriate entry (or entries).
3. On June 29, 2010, Shannon Johnson was able to pay the amount she owed in full. Make the appropriate entry (or entries).
4. Assume that Allowance for Bad Debts at December 31, 2009, had a debit balance of $1,100 instead of a credit balance of $1,100. Make the necessary adjusting journal entry that would be needed on December 31, 2009.

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Days Past Due Current 1-30 31-60 61-90 Over 90 Balance $105,600 $31,400 $14,200 $3,600 $900