Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1 5 points Sav Help Save & Exit Submit Revise your worksheet to reflect these updated assumptions then answer the questions that follow You have
1 5 points Sav Help Save & Exit Submit Revise your worksheet to reflect these updated assumptions then answer the questions that follow You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end. Estimated) 01:00:00 Age Group Accounts Receivable Uncollectible Not yet due 1-30 days past due $74,000 32,000 10% 31-60 days past due 12,000 20 61-90 days past due ,000 40% ock Over 90 days past due t 10,000 80% $134,000 Pri References Allowance for Uscollectible Accounts 1,300 Credit After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20% Also, the "Over 90 days' category is understated and needs to increase by 20% Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? Accounts Receivable Alowance for Uncollectible Accounts Check my work 1 5 points ossn look Pret References Required Information 2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction st Journal entry worksheet Record the bad debt expense for the period based on the estimate of uncollectible accounts Note: Enter detits before credits Transaction General Journal Debit Credit 1 Bad Debt Expense Allowance for Uncollectible Accounts View general journal Recordary Clear entry Check m
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started