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Question 10 Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.
Question 10 Rigney 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. Total 171,300 Number of Days Outstanding 31-60 61-90 91-120 40,400 33,100 16,500 5% 6% 9% 0-30 71,200 2% Accounts receivable % uncollectible Over 120 $10,100 21% Estimated Bad debts $ (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, $4,600 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $4,600 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) 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 (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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