Presented below is an aging schedule for Kimler Company on December 31, 2024. Kimler sells all of its goods on account with terms n/30.

Instructions
a. Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2024.
b. Prepare the adjusting journal entry to record bad debt expense.
c. Show how accounts receivable would be presented on the balance sheet on December 31, 2024.

Taking It Further

If Kimler’s credit manager increases the amount of credit checking the company does before granting credit on all of its customers, will that eliminate the bad debts? Explain.

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Customer Akers Barrett Corner DeJong Other Total $ 20,000 30,000 50,000 38,000 126,000 $264,000 Not Yet Due $ 30,000 15,000 92,000 $137,000 2% Number of Days Past Due 31-60 61-90 $11,000 1-30 $ 9,000 5,000 15,000 13,000 $29,000 $24,000 5% $30,000 10% $30,000 Estimated percentage uncollectible Total estimated bad debts At December 31, 2024, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,000. Over 90 24% $38,000 6,000 $44,000 50%