Assignment 8 - Receivables

Question 1

Rodrigo Foods had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31of $28,000.

Calculate the amount that should appear in December 31, 2020, balance sheet as the allowance for doubtful accounts.

Prepare the adjusting entry assuming that Rodrigo Foods estimates uncollectible accounts based on an aging analysis as follows:

December 31	Age of Accounts	Expected Percentage
Accounts Receivable	Receivable	Uncollectible
1,360,000	Not Due	1.25%
643,000	1-30 days past due	2%
137,000	31-60 days past due	6.5%
88,000	Over 60 days past due	33%

Accounts Receivable Chart

Date	Account Titles and Explanation	PR	Debit	Credit