Required information Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below) On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 860,000 344,000 68.800 34,400 13,760 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent U ncollectible 1.300 2.05 6.55 33.00 69.00 Problem 7-3A Part 1 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31. Estimated Uncollectible Accounts Percent Receivable Uncollectible (9.1%) Not due: 1 to 30: 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectibles Problem 7-3A Part 2 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the estimated bad debts. Note: Enter debits before credits General Journal Debit Credit Date Dec 31 View general Journal Record entry Clear entry 9 3 Next > Required information Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below.) On December 31, Jarden Co's Allowance for Doubtful Accounts has an unadjusted credit balance of $15,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 160,000 344.000 68,800 34,400 13,760 Age of Expected Percent Accounts Receivable Uncollectible Not yet due 1.300 1 to 30 days past due 2.05 31 to 60 days past due 6.55 61 to 90 days past due 33.00 Over 90 days past due 69.00 Problem 7-3A Part 3 3. On June 30 of the next year, Jarden concludes that a customer's $5,050 receivable is uncollectible and the account is written off Does this write off directly affect Jarden's net income? ces Affects Jarden's net income 3 IN