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Jackson Company has the following unadjusted account balances at December 31, 2018. Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (debit balance).

Jackson Company has the following unadjusted account balances at December 31, 2018.

Accounts Receivable of $185,700 and Allowance for Doubtful Accounts of $1,600 (debit balance).

Also, Jackson has just determined that $1,600 of $3,200 balance that is over 90 days past due will not be collected.

This company uses the aging of accounts receivable to estimate its bad debts. The following aging schedule reflects its accounts receivable at the year-end:

Account Age

Age Group Balance

Estimated Uncollectible Percentage

Current (not yet due)

$96,000

1.5%

1-30 days past due

64,000

4.0

31-60 days past due

16,000

10.0

61-90 days past due

6,400

40.0

Over 90 days past due

3,200

65.0

Total

$185,600

Required:

  1. Record if necessary an entry for the $1,600 deemed uncollectible.
  2. Calculate the net receivable that should appear on the December 31, 2018 balance sheet.

Prepare the adjusting journal entry to record bad debts expense for December 31, 2018.

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