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Ch Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2020, of $2,050. Required: a. Prepare the adjusting
Ch Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December 31, 2020, of $2,050. Required: a. Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows. December 31, 2020 Accounts Receivable $140,000 40,000 9,500 2,200 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Expected Percentage Uncollectible 1% 4% 10% 60% nces View transaction list View journal entry worksheet No Date December 31, 2020 General Journal Debit Credit Bad debt expense 3,220 Allowance for doubtful accounts 3,220 b. During 2021, credit sales were $1,225,000; sales discounts taken were $23,000; accounts receivable collected were $1,042,700; and accounts written off during the year totalled $24,000. Prepare the adjusting entry required on December 31, 2021, to estimate uncollectible receivables assuming it is based on the following aging analysis. December 31, 2021 Accounts Receivable $240,000 74,000 21,000 15,000 Age of Accounts Receivable Not due (under 30 days) 1 to 30 days past due 31 to 60 days past due Over 60 days past due Expected Percentage Uncollectible 1% 4% 10% 60% nt ences View transaction list Journal entry worksheet < 1 Record the estimate for uncollectible accounts. 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date December 31, 2021 General Journal Debit Credit Record entry Clear entry View general journal > Show how accounts receivable would appear on the December 31, 2021, balance sheet. Assets Current assets: Partial Balance sheet
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