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E 7-6 LO3 Aging of Accounts Receivable Waffle Company's accounts receivable reveal the following balances: Age of Accounts Current... 1-30 days past due 31-60 days
E 7-6 LO3 Aging of Accounts Receivable Waffle Company's accounts receivable reveal the following balances: Age of Accounts Current... 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due ************ Current... 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due **** Receivable Balance $720,000 395,000 105,000 52,000 13,000 The credit balance in Loss Allowance is now $42,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible: 0.5% 3.0 16.0 52.5 92.0 Prepare an aging schedule for the accounts receivable, and give the journal entry for recording the necessary change in the loss allowance account.
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