Presented below is an aging schedule for Sonder Company at June 30, 2023:

Instructions
a. Prepare T accounts for Accounts Receivable and Allowance for Doubtful Accounts and enter the 2023 unadjusted balances.
b. Prepare and post the adjusting entry for uncollectibles at June 30, 2023.
c. Prepare and post the entries for these selected fiscal 2024 events and transactions: 1. September 30, a $1,200 customer balance originating in 2023 is judged uncollectible. 2. November 30, a cheque for $1,200 is received from the customer whose account was written off as uncollectible on September 30.
d. Prepare the adjusting entry for uncollectibles on June 30, 2024, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $960 and the aging schedule indicates that total estimated uncollectibles will be $37,920.

Taking It Further

Some of Sonder’s accounts receivable balances appear to be well past the due date. What are some steps that Sonder’s management might take to collect the amounts owing? Which specific customers should management be most concerned about?

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Customer Archer Baccay Chaves Kimura Others Estimated percentage uncollectible Estimated uncollectible accounts Total $ 26,400 48,000 68,400 40,800 158,400 $342,000 Not Yet Due $ 48,000 19,200 115,200 $182,400 3% Number of Days Past Due 31-60 61-90 1-30 $12,000 $14,400 7,200 6% 19,200 16,800 38,400 $31,200 $42,000 $42,000 13% 25% Over 90 $40,800 7,200 $48,000 50% $ 46,332 $ 5,472 $ 2,304 $ 4,056 $10,500 At June 30, 2023, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $14,400. $24,000