1. Problem 7-5 (Bad Debt Reporting) The following information relates to the Accounts Receivable accounts of G Corporation during 2019: An aging schedule of the accounts receivable as of December 31, 2019 is as follows: Net Debit Balance % To Be Applied After Correction Is Made Under 60 days $172,342 1% 60 - 90 days 136,490 3% 91 - 120 days 39,924* Over 120 days 23,644 Includes $3,700 definitely uncollectible; estimated remainder uncollectible is 25% $372,400 * The $3,240 write-off of receivables is related to the 91 120 days category. The Accounts Receivable account has a debit balance of $372,400 on December 31, 2019. 2. 1 3. Two entries were made in the Bad Debt Expense account during the year. (1) A debit on December 31 for the amount credited to Allowance for Doubtful Accounts, 2) A credit for $3,240 on November 3, 2019, and a debit to Allowance for Doubtful Accounts because of a bankruptcy. Allowance for Doubtful Accounts for 2019 is as follows: 4. Nov 3 Allowance for Doubtful Accounts Uncollectible accounts Jan 1 Bal b/d written off 3,240 Dec 31 5% of $372,400 8.750 18,620 5. A credit balance exists in Accounts Receivable (60 - 90 days) of $4,840, which represents an advance on a sales contract. Instructions: Assuming that the books have not been closed for 2019, make the necessary correcting entries. 1. Problem 7-5 (Bad Debt Reporting) The following information relates to the Accounts Receivable accounts of G Corporation during 2019: An aging schedule of the accounts receivable as of December 31, 2019 is as follows: Net Debit Balance % To Be Applied After Correction Is Made Under 60 days $172,342 1% 60 - 90 days 136,490 3% 91 - 120 days 39,924* Over 120 days 23,644 Includes $3,700 definitely uncollectible; estimated remainder uncollectible is 25% $372,400 * The $3,240 write-off of receivables is related to the 91 120 days category. The Accounts Receivable account has a debit balance of $372,400 on December 31, 2019. 2. 1 3. Two entries were made in the Bad Debt Expense account during the year. (1) A debit on December 31 for the amount credited to Allowance for Doubtful Accounts, 2) A credit for $3,240 on November 3, 2019, and a debit to Allowance for Doubtful Accounts because of a bankruptcy. Allowance for Doubtful Accounts for 2019 is as follows: 4. Nov 3 Allowance for Doubtful Accounts Uncollectible accounts Jan 1 Bal b/d written off 3,240 Dec 31 5% of $372,400 8.750 18,620 5. A credit balance exists in Accounts Receivable (60 - 90 days) of $4,840, which represents an advance on a sales contract. Instructions: Assuming that the books have not been closed for 2019, make the necessary correcting entries