Required information Problem 9-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 860,000 Age of Accounts Receivable Not yet due Expected Percent Uncollectible 1.30% 344,000 68,800 1 to 30 days past due 31 to 60 days past due 2.05 6.55 34,400 61 to 90 days past due 33.00 13,760 Over 90 days past due 69.00 Problem 9-3A (Algo) Part 1 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an aging of accounts receivable. Accounts Receivable Answer is complete and correct. Percent Uncollectible (#.##%) Estimated Uncollectible Not due: $ 860,000 1.30% $ 11,180 1 to 30: 344,000 2.05% |= 7,052 31 to 60: 68,800 6.55% |= 4,506 61 to 90: 34,400 33.00% |= 11,352 Over 90: 13,760 69.00% |= 9,494 Estimated balance of allowance for uncollectibles $ 43,584 credit ! Required information Problem 9-3A (Algo) Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below.] On December 31, Jarden Company's Allowance for Doubtful Accounts has an unadjusted credit balance of $14,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Age of Accounts Receivable Not yet due Expected Percent Accounts Receivable $860,000 344,000 Uncollectible 1.30% 68,800 1 to 30 days past due 31 to 60 days past due 2.05 6.55 34,400 61 to 90 days past due 13,760 Over 90 days past due 33.00 69.00 Problem 9-3A (Algo) 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 1 Record the estimated bad debts. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal