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Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $248,000;
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts.
- Accounts not yet due = $248,000; estimated uncollectible = 10%.
- Accounts 145 days past due = $34,400; estimated uncollectible = 15%.
- Accounts more than 45 days past due = $13,700; estimated uncollectible = 20%.
Before recording any adjustments, Dhaliwal has a debit balance of $61,800 in its allowance for uncollectible accounts.
Required:
- Estimate the appropriate 12/31/2024 balance for Dhaliwals allowance for uncollectible accounts.
- What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
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