Question
At December 31 of the current year, the Sheridan Nurseries Company had a balance of $160,000 in its Accounts Receivable account and a credit balance
At December 31 of the current year, the Sheridan Nurseries Company had a balance of $160,000
in its Accounts Receivable account and a credit balance of $1,700 in its Allowance for
Uncollectible Accounts. The Accounts Receivable subsidiary ledger consisted of $161,500 in
debit balances and $1,500 in credit balances. The following schedule shows the company's
analysis of Accounts Receivable balances at December 31, and the percentages of each age
group that have proven uncollectible in the past.
Amount Percent Doubtful
Current $133,000 1
0-60 Days Past Due 15,000 5
61-180 Days Past Due 8,000 15
Over Six Months Past Due 4,500 40
Total Past Due $160,500
Note: if needed prepare the adjusting journal entry to record the provision for credit losses for the
year.
11) The adjustment to the Allowance for Uncollectible Accounts at Dec 31st is:
a) 5,080
b) 3,390
c) 3,380
d) 0
e) None of the above
12) The balance of the account Allowance for Uncollectible Accounts at Dec 31st is:
a) 5,090
b) 3,390
c) 1,700
d) 0
e) None of the above
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