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Problem 5-4B (Algo) Record transactions related to uncollectible accounts (LO5-4, 5-5) Peterson Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars
Problem 5-4B (Algo) Record transactions related to uncollectible accounts (LO5-4, 5-5) Peterson Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2024, the company provides services of $403,000 on account. Of this amount, $53,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2024, follows. Age Group Not yet due 0 to 30 days past due 31 to 60 days past due More than 60 days past due Total Required: Estimated Percent Amount Receivable Uncollectible $ 33,000 2% 10,300 7,300 5% 10% 2,400 20% $ 53,000 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $330 (debit). 3. On April 3, 2025, a customer's account balance of $430 is written off as uncollectible. Record the write-off. 4. On July 17, 2025, the customer whose account was written off in requirement 3 unexpectedly pays $100 of the amount but does not expect to pay any additional amounts. Record the cash collection. Complete this question by entering your answers in the tabs below.
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