(a)

Calculate the total estimated bad debts based on the information below.

Number of Days Outstanding

Total

0-30

31-60

61-90

91-120

Over 120

Accounts receivable

$550,000

$379,000

$92,000

$47,000

$20,000

$12,000

% uncollectible

1%

4%

5%

8%

11%

Estimated bad debts

$enter estimated bad debts in dollars

$enter estimated bad debts in dollar

$enter estimated bad debts in dollars

$enter estimated bad debts in dollars

$enter estimated bad debts in dollars

$enter estimated bad debts in dollars

(b)

Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,200debit.(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

enter an account title for the adjusting entry to record the bad debts

enter a debit amount

enter a credit amount

enter an account title for the adjusting entry to record the bad debts

enter a debit amount