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Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. Total Days Past Due 0 1 to 30 31
Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis.
Total | Days Past Due | |||||
---|---|---|---|---|---|---|
0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||
Accounts receivable | $ 150,000 | $ 90,000 | $ 28,000 | $ 12,000 | $ 9,000 | $ 11,000 |
Percent uncollectible | 1% | 3% | 5% | 8% | 11% |
- Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.
- Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,000 credit.
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