Problem 7,3A (Static) Aging Accounts Receivable; Write-offs (L07-1, L07-6) Putnam & Putnam, a legal firm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end, an aging of the accounts receivable produced the following five groupings a. Not yet due b. 1-30 days past due c. 31-60 days past due d. 61-90 days past due e. Over 90 days past due Total $ 300,000 126,000 48,000 9,880 18,000 5501,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the five age groups to be as follows: Group a, 1 percent Group b, 3 percent Group c, 10 percent Group d. 20 percent, and Group e. 50 percent. The Allowance for Doubtful Accounts before adjustment at December 31 showed a credit balance of $7080. Required: a. Compute the estimated amount of uncollectible accounts based on the above clasification by age groups. b. Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. C. Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originated on September 1 in the amount of $5,160 was worthless because of the bankruptcy of the client. Safeland Co. Prepare the journal entry required on January 10 to write of this account Complete this question by entering your answers in the tabs below. Required A Required Required Compute the estimated amount of uncollectible accounts based on the above classification by age groups Estimated Uncochitle Accounts Required> Feyuncu on Januoty TU LO WIE UILIS ALCOIL Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare the adjusting entry needed to bring the Allowance for Doubtful Accounts to the proper amount. (If no entry transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the current provision for the Allowance for Doubtful Accounts. Note: Enter debits before credits: Dato General Journal Debit Credit Dec. 31 Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required A Required B Required Assume that on January 10 of the following year, Putnam & Putnam learned that an account receivable that had originat 1 In the amount of $5,160 was worthless because of the bankruptcy of the client, Safeland Co. Prepare the journal entry January 10 to write off this account. (If no entry is required for a transaction/event, select "No journal entry required" ir field) View transaction list Journal entry worksheet 1 Record the entry to write-off as uncollectible the account receivable from Safeland Co. Note: Enter debits before credits Date General Journal Dobit Credit Jan. 10 Record entry Clear entry View general journal
