At December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of TM Manufacture, Inc., is $390,000. The Allowance for Doubtful Accounts has a(n) $22,300 credit balance. TM Manufacture prepares the following aging schedule for Accounts Receivable: E (Click the icon to view the aging schedule.) Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? Before we can assess whether the current balance of the allowance account is adequate, we first have to calculate a revised allowance for doubtful accounts amount. (Round to the nearest dollar.) Allowance for Doubtful Accounts: Credit balance needed Data Table 1-30 31-60 Age of Accounts 61-90 1-30 Days 31-60 Days 61-90 Days Over 90 Over 90 Days Total Balance Subtotal $160,000 $80,000 $390,000 $120,000 $30,000 Estimated uncollectible 0.4 % 3.0 % 7.0 % 60.0 % Less: Unadjusted balance Adjusting entry amount Print Done The credit balance at December 31 in Allowance for Doubtful Accounts should be $ The current balance is Thus, the current balance of the allowance account is Requirement 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. (Record debits first, then credits. Exclude explanations from any journal entries.) First, prepare the journal entry using the adjusting entry amount we calculated in the first step. lournal Entau This Question: 8 pts 6 of 26 (1 complete) This Test: 200 pts possible At December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of TM Manufacture, Inc., is $390,000. The Allowance for Doubtful Accounts has a(n) $22,300 credit balance. TM Manufacture prepares the following aging schedule for Accounts Receivable: E (Click the icon to view the aging schedule.) Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. Journal Entry Date Accounts Debit Credit Dec 31 Data Table Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Total Balance Now, prepare the T-account for Allowance for Doubtful Accounts. $120.000 $160,000 $80,000 $30,000 $390,000 Allowance for Doubtful Accounts Estimated uncollectible 0.4 % 3.0 % 7.0 % 60.0 % Print Done Requirement 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. There are two generally accepted methods to present receivables on the balance sheet. The first method reports the allowance for doubtful accounts amount in the line item description. (Enter the allowance for doubtful accounts amount, then calculate the net accounts receivable amount.) Balance Sheet (Partial): Current assets: The second method used to present receivables on the balance sheet shows the Allowance for Doubtful Accounts on a line of its own. Balance Sheet (Partial): Less Choose from any list or enter any number in the input fields and then continue to the next question. At December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of TM Manufacture, Inc., is $390,000. The Allowance for Doubtful Accounts has a(n) $22,300 credit balance. TM Manufacture prepares the following aging schedule for Accounts Receivable: E (Click the icon to view the aging schedule.) Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? Before we can assess whether the current balance of the allowance account is adequate, we first have to calculate a revised allowance for doubtful accounts amount. (Round to the nearest dollar.) Allowance for Doubtful Accounts: Credit balance needed Data Table 1-30 31-60 Age of Accounts 61-90 1-30 Days 31-60 Days 61-90 Days Over 90 Over 90 Days Total Balance Subtotal $160,000 $80,000 $390,000 $120,000 $30,000 Estimated uncollectible 0.4 % 3.0 % 7.0 % 60.0 % Less: Unadjusted balance Adjusting entry amount Print Done The credit balance at December 31 in Allowance for Doubtful Accounts should be $ The current balance is Thus, the current balance of the allowance account is Requirement 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. (Record debits first, then credits. Exclude explanations from any journal entries.) First, prepare the journal entry using the adjusting entry amount we calculated in the first step. lournal Entau This Question: 8 pts 6 of 26 (1 complete) This Test: 200 pts possible At December 31, 2016, before any year-end adjustments, the Accounts Receivable balance of TM Manufacture, Inc., is $390,000. The Allowance for Doubtful Accounts has a(n) $22,300 credit balance. TM Manufacture prepares the following aging schedule for Accounts Receivable: E (Click the icon to view the aging schedule.) Requirements 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? 2. Make the entry required by the aging schedule. Prepare a T-account for the allowance. 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. Journal Entry Date Accounts Debit Credit Dec 31 Data Table Age of Accounts 1-30 Days 31-60 Days 61-90 Days Over 90 Days Total Balance Now, prepare the T-account for Allowance for Doubtful Accounts. $120.000 $160,000 $80,000 $30,000 $390,000 Allowance for Doubtful Accounts Estimated uncollectible 0.4 % 3.0 % 7.0 % 60.0 % Print Done Requirement 3. Show how TM Manufacture will report Accounts Receivable on its December 31 balance sheet. There are two generally accepted methods to present receivables on the balance sheet. The first method reports the allowance for doubtful accounts amount in the line item description. (Enter the allowance for doubtful accounts amount, then calculate the net accounts receivable amount.) Balance Sheet (Partial): Current assets: The second method used to present receivables on the balance sheet shows the Allowance for Doubtful Accounts on a line of its own. Balance Sheet (Partial): Less Choose from any list or enter any number in the input fields and then continue to the next