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Diaz Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 $285,000 $198,000 $45,000 1% 2%
Diaz Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 $285,000 $198,000 $45,000 1% 2% 31 to 60 $18,000 5% 61 to 90 $9,000 7% Over 90 $15,000 10% Accounts Receivable Percent Uncollectible Required: (a) Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. (b) Prepare the adjusting entry to record bad debts expense using the estimate from part (a). Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,100 debit. (c) Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet after the adjustment. (d) Assume that the Diaz Company writes off a $1,500 account receivable on January 15 of the next year. Show how Accounts Receivable and the Allowance for Doubtful Accounts would appear on the balance sheet immediately after writing off the account
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