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ABC Inc. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected
ABC Inc. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected information is from ABC Inc.'s partial aging schedule at the end of July: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible 2% 0-30 days $ 780,000 6% 340,000 31-60 days 61-90 days 115,000 12% Over 90 days 76,000 22% Total $1,311,000 6% 340,000 31-60 days 12% 115,000 61-90 days 22% 76,000 Over 90 days Total $1,311,000 The unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,360. a) Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information. b) Prepare the adjusting journal entry to record the bad debts using the information determined in part (a). c) How would your journal entry be different if the unadjusted balance in Allowance for Doubtful Accounts were a debit of $12,360? d) In August, management determined that $45,730 of the outstanding receivables were specifically uncollectible. Prepare the journal entry to write off the uncollectible amount. e) ABC Inc. subsequently collected $8,850 of the $45,730 that was determined to be uncollectible in part (c). Prepare the journal entry(ies) to record the collection
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