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

Age Interval:	Balance:	Percentage:	Amount:
Not past due	550,000	2.50%
1~30 days past due:	96,500	4.00%
31~60 days past due:	43,750	9.50%
61~90 days past due:	22,250	16.00%
91~180 days past due:	5,600	31.00%
181~365 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.

Chart of Accounts

CHART OF ACCOUNTS

Lindy Designs

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
129	Allowance for Doubtful Accounts
131	Interest Receivable
132	Notes Receivable
141	Merchandise Inventory
145	Supplies
151	Prepaid Insurance
181	Land
191	Equipment
192	Accumulated Depreciation

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Lindy Zhu, Capital
311	Lindy Zhu, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense
523	Delivery Expense
524	Repairs Expense
531	Rent Expense
533	Insurance Expense
534	Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

First Question

Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round your answers to the nearest dollar.

Age Interval:	Balance:	Percentage:	Amount:
Not past due	550,000	2.50%
1~30 days past due:	96,500	4.00%
31~60 days past due:	43,750	9.50%
61~90 days past due:	22,250	16.00%
91~180 days past due:	5,600	31.00%
181~365 days past due:	3,100	60.00%
Over 365 days past due:	1,250	95.00%
Total:	722,450

General Journal

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.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2

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.

PAGE 1

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2