Question:

Question:Corp. made $1,500,000 in sales during 2017. Twenty percent of these were cash sales. During the year, $72,000 of accounts receivable were written off as being uncollectible. In addition, $40,000 of the accounts that were written off in 2016, were unexpectedly collected in 2017. At its' year-end December 31, 2017, Diebold had a balance of $525,000 in accounts receivable. The balance in the Allowance for Doubtful Accounts general ledger account was $112,500 credit at December 31, 2017.

Table:

Age (days) A/R

1-30 $210,000

31-60 $105,000

61-90 $52,500

91-120 $126,000

Over 120 $31,500

Total $525,000

Questions:

Prepare journal entries to record the following 2017 transactions:

The write-off of $72,000

The recovery of $40,000

Recalculate the balance in the Allowance for Doubtful Accounts general ledger account at December 31, 2017.

The estimated uncollectible accounts at December 31, 2017 are calculated as follows:

Table:

Age (days) Estimated Loss Percentage

1-30 2%

31-60 4%

61-90 6%

91-120 10%

Over 120 40%

Question: Prepare the adjusting entry required at December 31, 2017.