A complete list of the accounts receivable, as of December 31, of Wind Refrigeration follows: Instructions: 1.
Question:
A complete list of the accounts receivable, as of December 31, of Wind Refrigeration follows:
Instructions:
1. Age the accounts receivable by determining the age group for each invoice and totaling the invoice amounts in each age group category. Wind Refrigeration's credit terms are n/30.
2. Calculate the estimated balance of Allowance for Uncollectible Accounts using the following percentages:
not yet due, 0.3%; 1-30 days past due, 1.0%; 31-60 days, 4.0%; 61-90 days, 20%; and over 90 days, 60%.
3. Journalize the adjusting entry for uncollectible accounts expense on December 31 of the current year. Use page 12 of a general journal. The Allowance for Uncollectible Accounts has a debit balance of \($692.16\) on December 31 of the current year before adjusting entries are recorded.
Step by Step Answer:
