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Assignment 8 - Receivables Question 1 Rodrigo Foods had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31 of $28,000. Calculate

Assignment 8 - Receivables

Question 1

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

Calculate the amount that should appear in the 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

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