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On August 31st, Smith Jones has a debit A/R balance of $156,000 and an allowance for bad debt credit balance of $7,100. Smith Jones estimates
On August 31st, Smith Jones has a debit A/R balance of $156,000 and an allowance for bad debt credit balance of $7,100. Smith Jones estimates the allowance based on an aging of the A/R. The current A/R balance has the following information: Not yet due $48,000 3% 0-30 days 18,000 5% 31-60 days 10,000 20% 61 to 90 days 50,000 35% Over 90 days 30,000 60% 1. Calculate the total allowance amount that is needed. 2. Make the necessary journal entry to bring the allowance account to the proper amount
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