An aging analysis of Cato Limited's accounts receivable at December 31, 2018 and 2017, showed the following: Accounts Receivable Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total 2018 $297,600 63,600 86,600 131,200 $579,000 2017 $321,500 114,900 76,300 49,800 $562,500 Estimated Percentage Uncollectible 3% 6% 12% 24% Additional information: 1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,800. 2. In 2018, $42,400 of accounts were written off as uncollectible and $3,300 of accounts previously written off were recovered. Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2017 and 2018. Note that the estimated percentages uncollectible are the same for both years. Total estimated allowance balance at Dec 31, 2017: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible Estimated Uncollectible Accounts 9,645 0-30 days $321,500 3% 31-60 days 6% 6,894 114,900 76,300 12% 9,156 61-90 days Over 90 days 49,800 24% 11,952 Total $562,500 $ 37,647 Total estimated allowance balance at Dec 31, 2018: Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible Estimated Uncollectible Accounts 8,928 0-30 days $297,600 31-60 days 63,600 3,816 61-90 days 86,600 10,392 Over 90 days 131,200 24% 31,488 Total $579,000 54,624 Record the adjusting entry relating to bad debts on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account tities and enter for the amounts.) Debit Credit Account Titles and Explanation Bad Debts Expense 28,002 Allowance for Doubtful Accounts 28,002 Record the write off of uncollectible accounts in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Allowance for Doubtful Accounts Accounts Receivable Record the collection of accounts previously written off in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Accounts Receivable Allowance for Doubtful Accounts (To reverse write off of account receivable) Cash Accounts Recevable (To record collections) Prepare the adjusting entry relating to bad debts on December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Debit Credit Account Titles and Explanation Bad Debts Expense Allowance for Doubtful Accounts Calculate the carrying amount of Cato's accounts receivable at December 31, 2017 and 2018. 2018 2017 Carrying amount $
