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45) Accounts Receivable Allowances Bulldog Manufacturing had a $1,250 credit balance in Allowance for Doubtful Accounts at December 31, 2019 before the current year's provision
45) Accounts Receivable Allowances Bulldog Manufacturing had a $1,250 credit balance in Allowance for Doubtful Accounts at December 31, 2019 before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible 2% 3% 5% Current Accounts 1-30 days past due. 31-60 days past due 61-90 days past due Over 90 days past due Total Accounts Receivable $164,000 17,000 6,500 3,250 5.000 $195760 40% Additional Information: 1. On January 20, 2020, management determined that a customer, Joe's Supplies Inc., went bankrupt. As a result, their full balance outstanding of $4,000 was written off. 2. On February 15, 2020, Bulldog Manufacturing collected $1,500 of the balance that had been owing from Joe's through the legal bankruptcy proceedings. Required: (9 marks) Explanations NOT required. (a) Prepare the adjusting entry at December 31, 2019 for the estimated uncollectible accounts. (b) Record the write-off on January 20, 2020, (c) Record the collection on February 15, 2020
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