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Novak Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Calculate the

Novak Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.

Calculate the total estimated bad debts based on the below information.

Number of Days Outstanding

Total

030

3160

6190

91120

Over 120

Accounts receivable 359,100 109,300 76,900 71,200 54,500 $47,200
% uncollectible 2% 5% 6% 9% 21%
Estimated Bad debts $

$

$

$

$

$

SHOW LIST OF ACCOUNTS

LINK TO TEXT

(b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $8,300 debit.
(c) Of the above accounts, $4,900 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
(d) The company collects $4,900 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No

Account Titles and Explanation

Debit

Credit

(b)

(c)

(d)

(To reverse write-off.)

(To record collection of write off.)

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