Cycle Tech Bicycles uses the allowance method of accounting for uncollectible accounts. The company estimates the uncollectible amount by aging its accounts receivable accounts. 

Instructions

1. Complete the analysis of accounts receivable that is included in your working papers.

2. Calculate the estimated uncollectible amount. Use the form provided in your working papers.

3. Journalize the June 30 adjusting entry for uncollectible accounts expense on page 11 of the general journal. Before the adjusting entry, Allowance for Uncollectible Accounts had a credit balance of $142.

4. Post the adjusting entry to the general ledger accounts.