Question
At December, 2016 the Accounts Receivable balance of Digital Cable Company Digital Cable Company is $225,000. The Allowance for Bad Debts account has a $20,525
At December, 2016 the Accounts Receivable balance of Digital Cable Company Digital Cable Company is $225,000. The Allowance for Bad Debts account has a $20,525 debit balance. Digital Cable Company Digital Cable Company prepares the following aging schedule for its accounts receivable
Age of Accounts | |||||||||
1-30 Days | 31-60 Days | 61-90 Days | Over 90 Days | ||||||
Accounts Receivable | $65,000 | $85,000 | $45,000 | $30,000 | |||||
Estimated percent uncollectible | 0.50% | 3.00% | 8.00% | 51.00% | |||||
journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 2016
Age of Accounts | |||||||||||
30-Jan | 31-60 | 61-90 | Over 90 | Total | |||||||
Days | Days | Days | Days | Balance | |||||||
Accounts Receivable | $65,000 | $85,000 | $45,000 | $30,000 | $225,000 | ||||||
Estimated percent uncollectible | 0.5% | 3% | 8% | 51% | |||||||
Estimated total uncollectible | $325 | $2,550 | $3,600 | $15,300 | $21,775 | ||||||
Show the T-account for the Allowance for Bad Debts at December 31, 2016. |
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