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Macaron Ltd. prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected

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Macaron 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 Macaron's partial aging schedule at the end of July: Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Accounts Receivable $748,000 326,000 104,000 81,000 $1,259,000 Estimated Percentage Uncollectible 2% 5% 12% 24% The unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,490. In August, management determined that $49.270 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 Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information. Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Accounts Receivable $748,000 326,000 104,000 81,000 $1,259,000 Estimated Percentage Uncollectible 2% 5% 12% 24% Estimated Uncollectible Accounts 14960 16300 12480 19440 63180 Prepare the adjusting journal entry to record the bad debts using the information determined above. (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 Bad Debts Expense Allowance for Doubtful Accounts Yes the bad debts expense would be $ Debit 75670 50690 Would your journal entry be different if the unadjusted balance in Allowance for Doubtful Accounts were a debit of $12,490? Credit 50690

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