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4. Sunrise Products Sunrise Products has 250 accounts receivable accounts. All accounts are due in 30 days. On June 30, an ageing schedule was prepared.
4. Sunrise Products Sunrise Products has 250 accounts receivable accounts. All accounts are due in 30 days. On June 30, an ageing schedule was prepared. The results are summarized below: Total Not Yet Due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Amounts $345 250 $183 590 $94 680 $43 340 $9.000 $14 640 Two accounts receivable were accidentally omitted from this schedule. The following data is available regarding these accounts: R. Jones owes $4 250 from two invoices: Invoice no. 218, dated March 14, in the amount of $2 980; and Invoice no. 568, dated May 9, in the amount of $1 270. F. Smith owes $3 760 from two invoices: Invoice no. 574, dated May 19, in the amount of $1 350: and Invoice no. 641, dated June 5, in the amount of $2 410. a) Complete the ageing chart as of June 30 by adding to the column subtotals an ageing of the accounts of Jones and Smith. b) Calculate the estimated portion of each age group that will prove uncollectible and the required balance in the Allowance for Doubtful Accounts. The following percentages of each age group are estimated to be uncollectible: Not yet due, 1%; 1-30 days, 4%; 31-60 days, 10%; 61-90 days, 30%; over 90 days, 50%. c) Prepare the journal entry to adjust the Allowance for Doubtful Accounts account at June 30. Prior to making this adjustment, the account has a credit balance of $13 800. A B 1 Sunrise Products 2 C DE F G H K LM N As of June 30 Aging of Accounts Receivable Total Not Yet 1-30 days 31-60 days 61-90 days Due past due past due past due Over 90 days past due Amounts 3 4 5 6 7 8 9 10 11 12 General Journal 13 Date Particulars Debit Page Credit Allowance for Doubtful Accounts 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 U 02 A6 Q1 U 02 A6 Q2 U 02 A6 Q3 U 02 A6 Q4 U 02 A6 Q5 U 02 A6 Q6 Ready
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