Age of Accounts
Accounts Receivable	1-30 Days	31-60 Days	61-90 Days	Over 90 Days
$235,000	$132,000	$43,000	$13,000	$47,000
Estimated percent uncollectible	0.2%	2%	15%	35%

The September 30, 2017, records of Image CommunicationsImage Communications

include these accounts:

Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . .	$249,000
Allowance for Doubtful Accounts. . . . . . . . . . . . . . . . . . .	(8,400)

During the year,

Image CommunicationsImage Communications

estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in the Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2017,

the company completed the following selected transactions:

Nov 30	Wrote off as uncollectible the $1,700 account receivable from Brown Carpets and the $500 account
	receivable from Good Antiques.
Dec 31	Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end,
	based on the aging of receivables.

. Requirement 1. Record the transactions for the last quarter of

2017

in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Wrote off as uncollectible the

$1,700 account receivable from Brown Carpets and the $500 account receivable from Good Antiques.

Journal Entry
Date		Accounts	Debit	Credit
Nov	30

Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables.

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Requirement 2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balances. Post the entries from Requirement 1 to that account.

Open the T-account by posting the beginning balance. Then post the entries to the Allowance for Doubtful Accounts T-account and calculate the ending balance.

Allowance for Doubtful Accounts

Requirement 3. Show how

Image CommunicationsImage Communications

will report its accounts receivable in a comparative balance sheet for

2016

and 2017.

Use the three-line reporting format. At December 31, 2016, the company's Accounts Receivable balance was $214,000,

and the Allowance for Doubtful Accounts stood at $5,000.

	Image Communications
	Comparative Balance Sheet (partial)
	December 31, 2017 and 2016

2017

Less:

2016