A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible.

Est. Uncollectible Accounts

Age Interval

Balance

Percentage

Amount

Not past due

$550,000

2.50%

130 days past due

96,500

4.00%

3160 days past due

43,750

9.50%

6190 days past due

22,250

16.00%

91180 days past due

5,600

31.00%

181365 days past due

3,100

60.00%

Over 365 days past due

1,250

95.00%

Total

$722,450

Required:

a.	Determine the amount estimated to be uncollectible by completing the aging of receivables schedule.*
b.	If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year.**
c.	If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year.**
	*Round your answers to the nearest dollar.
	**Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar.

X

General Journal

b. If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar.

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ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

c. If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year on December 31. Refer to the Chart of Accounts for exact wording of account titles. Round your answers to the nearest dollar.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2