At December 31, 2023, the Accounts Receivable balance of Stenner’s Electronics is $300,000. The Allowance for Doubtful Accounts has an $8,900 credit balance. Accountants for Stenner’s Electronics prepare the following aging schedule for its accounts receivable:

Required

1. Journalize the adjusting entry for doubtful accounts based on the aging schedule. Show the T-account for the allowance at December 31, 2023.

2. Show how Stenner’s Electronics will report Accounts Receivable on its December 31, 2023, balance sheet.

3. Suppose all the facts of this situation are the same except that Allowance for Doubtful Accounts has a $900 debit balance. Calculate the amount of the adjusting entry.

Transcribed Image Text:

1 A 2 3 Accounts Receivable Estimated percent uncollectible 4 5 Allowance Needed B Age of Accounts Receivable 1-30 Days $140,000 0.5% 31-60 Days $80,000 D 2.0% 61-90 Days $70,000 6.0% E Over 90 Days $10,000 50.0% Total $300,000