Accounts Receivable Allowance for Doubtful Accounts Aging of Accounts Receivable Method

Rain-Away Umbrellas had the following balances at December 31, 2020, before the year-end adjustments:

Accounts Receivable
Debit	Credit
78,100
78,100

Allowance for Bad Debts
Debit	Credit
	1,160
	1,160

The aging of accounts receivable yields the following data:

Please perform the following:

1. Calculate the estimated total uncollectible amounts in each of the aging buckets.
2. Journalize Rain-Away Umbrellas entry to record bad debts expense for 2020 using the aging-of-receivables method.

Prepare a T account to compute the ending balance of Allowance for Bad Debts.

Aging of Accounts Receivable \begin{tabular}{clll} \hline & \multicolumn{1}{c}{060 days } & Over 60 days & Total Receivables \\ \hline Accounts Receivable & $72,700 & $5,400 & $78,100 \\ Estimated % uncollectible & 4% & 24% & \end{tabular}