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Company reports the following information for accounts receivable. Days Past Due Current 1-30 31-60 61-90 Over 90 $100,000 $80,000 $50,000 $30,000 $20,000 Estimates of amounts
Company reports the following information for accounts receivable.
Days Past Due
Current 1-30 31-60 61-90 Over 90
$100,000 $80,000 $50,000 $30,000 $20,000
Estimates of amounts to be written off for each category are:
Current Receivables 5%
Receivables 1 30 10%
Receivables 31- 60 20%
Receivables 61 90 40%
Receivables Over 90 80%
Prepare the journal entry to record the Uncollectible Accounts Expense, assuming this account has a $1,000 credit balance in the in the Allowance for Doubtful Accounts prior to making the necessary adjustment.
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