At December 31, 2021, before any year-end adjustments, the Accounts Receivable balance of TM Manufacture, Inc., is $350,000. The Allowance for Uncollectible Accounts has a(n) $22,300 credit balance. TM Manufacture prepares the following aging schedule for Accounts Receivable:

Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?

First, calculate a revised allowance for uncollectible accounts amount and the adjusting entry amount. (Round to the nearest dollar.)

Allowance for Uncollectible Accounts:
	Credit balance needed
	130
	3160
	6190
	Over 90
	Subtotal
	Less: Unadjusted balance
	Adjusting entry amount

The credit balance at December 31 in Allowance for Uncollectible 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.

First, make the entry required by the aging schedule. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit
Dec 31

Now, prepare a T-account for the allowance.

Allowance for Uncollectible Accounts

Requirement 3. Show how

TM Manufacture

will report Accounts Receivable on its December 31 balance sheet.

First show the single line presentation.

Balance Sheet (Partial):
Current assets:
				. . . . . . . . . . . . . . . .

Now show the detail presentation.

Balance Sheet (Partial):
Less:

Data table Age of Accounts Total Balance 1-30 Days 31-60 Days 61-90 Days Over 90 Days $350,000 $140,000 $110,000 $70,000 $30,000 Estimated uncollectible 0.3% 5.0 % 10.0 % 50.0 % Print Done