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Mel's Canvas Limited had a $1,600 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts.
Mel's Canvas Limited had a $1,600 credit balance in Allowance for Doubtful Accounts at December 31, 2022, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $300,000 1% 1-30 days past due 30,000 31-60 days past due 16,000 6% 61-90 days past due 10,000 12% Over 90 days past due 12,000 30% Total Accounts Receivable. $368,000 3% Instructions (a) Prepare the adjusting entry at December 31, 2022, to recognize bad debts expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had an $1,600 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's bad debts. You are to complete the questions above on appropriate separate document(s). Acceptable formats include: word document, excel documents, documents written by hand (scanned and uploaded as a pdf or jpeg file), or any template you have access to that fulfils the question requirements. You will then upload this or drag and drop' the file(s) into the upload box at the bottom of this question box
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