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H55 Ltd. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected
H55 Ltd. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected information is from H55's partial aging schedule at the end of July: Estimated Percentage Uncollectible 2% Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Accounts Receivable $727,000 344,000 106,000 71.000 $1,248,000 6% 13% 24% The unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,950. (a) Your answer is correct. Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information. Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible Estimated Uncollectible Accounts $727,000 $ 0-30 days 2% 14540 31-60 days 344,000 6% 20640 106,000 13780 61-90 days 13% Over 90 days 71,000 24% 17040 Total $1,248,000 $ 66000 (c) In August, management determined that $45,480 of the outstanding receivables were specifically uncollectible. Prepare the journal entry to write off the uncollectible amount. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit
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