Problem 7-4A Aging accounts receivable and accounting for bad debts LO P2

[The following information applies to the questions displayed below.]

Jarden Company has credit sales of $2.40 million for year 2013. On December 31, 2013, the companys Allowance for Doubtful Accounts has an unadjusted credit balance of $16,548. Jarden prepares a schedule of its December 31, 2013, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here.

December 31, 2013 Accounts Receivable		Age of Accounts Receivable	Expected Percent Uncollectible
$	480,000	Not yet due	1.10	%
	192,000	1 to 30 days past due	1.85
	38,400	31 to 60 days past due	6.35
	19,200	61 to 90 days past due	32.00
	3,840	Over 90 days past due	66.00

References

Section BreakProblem 7-4A Aging accounts receivable and accounting for bad debts LO P2

4.

value: 5.00 points

Required information

Problem 7-4A Part 1

Required:
1.	Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2013, using the aging of accounts receivable method.

(

References

eBook & Resources

Expanded tableDifficulty: Medium

Problem 7-4A Part 1Learning Objective: 07-P2 Apply the allowance method and estimate uncollectibles based on sales and accounts receivable.

eBook: Estimating Bad DebtsPercent of Sales Method

Check my work

5.

value: 5.00 points

Required information

Problem 7-4A Part 2

2.	Prepare the adjusting entry to record bad debts expense at December 31, 2013.

eBook & Resources

WorksheetDifficulty: Medium