Adventure Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 30-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 2%, (2) 13%, and (3) 39%, respectively. At December 31, 2016, the unadjusted credit balance in the Allowance for Doubtful Accounts was $110. The total Accounts Receivable in each age category were: (1) 1-30 days old, $72,000, (2) 30-90 days old, $13,000, and (3) more than 90 days old, $5,000.

A. Calculate the estimate of uncollectible accounts at December 31, 2016.

B. Prepare the appropriate adjusting entry dated December 31, 2016. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Problem 8-214 [LO 8-2 Adventure Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The nce of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 30-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 296 (2) 13%, and (3) 39%, respectively. At December 31, 2016, the unadjusted credit balance in the Allowance for Doubtful Accounts was $110. The total Accounts Receivable in each age category were: (1) 1-30 da old, $13,000 and (3) more than 90 ays old, $5,00.0 ys old, $72,000, (2) 30-90 Required a. Calculate the estimate of uncollectible accounts at December 31, 2016 b. Prepare the appropriate adjusting entry dated December 31, 2016. (f no entry is required for a transaction/event, select"No Journal Entry Required" in the first account field.) View transaction list : FI F2 FS F7