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An aging analysis of Sheridan Companys accounts receivable at December 31, 2020 and 2021, showed the following: Accounts Receivable Number of Days Outstanding Estimated %

An aging analysis of Sheridan Companys accounts receivable at December 31, 2020 and 2021, showed the following:

Accounts Receivable
Number of Days Outstanding Estimated % Uncollectible 2021 2020
030 days 1% $126,000 $155,000
3160 days 8% 31,500 77,500
6190 days 12% 63,000 46,500
Over 90 days 35% 94,500 31,000
Total $315,000 $310,000

Additional information:

1. At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,100.
2. In 2021, $27,500 of accounts was written off as uncollectible and $2,700 of accounts previously written off was collected.

Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2020, and at December 31, 2021.

2020
Number of Days Outstanding Amount % Estimated Uncollectible
030 days $155,000 1% $
3160 days 77,500 8%
6190 days 46,500 12%
Over 90 days 31,000 35%
Total $310,000 $

2021
Number of Days Outstanding Amount % Estimated Uncollectible
030 days $126,000 1% $
3160 days 31,500 8%
6190 days 63,000 12%
Over 90 days 94,500 35%
Total $315,000 $

Calculate the carrying amount of Sheridans accounts receivable at December 31, 2020, and December 31, 2021.

2020 2021
Carrying amount $ $

Record the following:

1. The adjusting entry on December 31, 2020.
2. The write off of uncollectible accounts in 2021.
3. The collection in 2021 of accounts previously written off.
4. The adjusting entry on December 31, 2021.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

1.

(To record estimate of uncollectible accounts.)

2.

(To record writeoff of accounts receivable.)

3.

(To reverse write off.)

(To record collection of previously written-off accounts.)

4.

(To record estimate of uncollectible accounts.)

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