1. Nija Incorporated reports the following aging schedule of its accounts receivable with the estimated percent uncollectible. What is the total estimate of uncollectible accounts using the aging method?

	Age Group	Amount Receivable		Estimated Percent Uncollectible
	0-60 days	$40,000		1%
	61-90 days	15,000		20%
	More than 90 days past due	5,000		60%
	Total		$60,000

1. Estimate the allowance for future uncollectible accounts using the following ages and estimated percentage uncollectible at the end of the year:

	Age Group	Amount Receivable	Estimated Percent Uncollectible		Estimated Amount Uncollectible
	Not yet due	$400,000	5%
	1-45 days past due	100,000	15%
	More than 45 days past due	25,000	40%
	Total	$525,000

A./Use a T-account to determine the year-end adjustment to the allowance account.

	Allowance for Uncollectible Accounts
				60,000	Beginning balance
				50,000	Write-offs
				10,000	Balance before adjustment
				?	Year-end adjustment
					Estimated ending balance

B.. Record the year-end adjusting entry for bad debts expense.

December 31		Debit		Credit
Bad Debt Expense . . . . . . . . . . . . . . . . . .. . . . . . .
	Allowance for Uncollectible Accounts. . . .			*

1. What is the total estimate of uncollectible accounts using the aging method?

	Age Group	Amount Receivable		Estimated Percent Uncollectible
	0-60 days	$30,000		10%
	61-90 days	25,000		25%
	More than 90 days past due	25,000		70%
	Total		$80,000

1. What is the total estimate of uncollectible accounts using the aging method?

	Age Group	Amount Receivable		Estimated Percent Uncollectible
	0-60 days	$40,000		5%
	61-90 days	5,000		35%
	More than 90 days past due	25,000		80%
	Total		$70,000