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Sandy's Downtown Properties developed an aged schedule of accounts receivable at the end of each year. (Click the icon to view the schedule of accounts
Sandy's Downtown Properties developed an aged schedule of accounts receivable at the end of each year. (Click the icon to view the schedule of accounts receivable.) The company estimated an allowance for uncollectible accounts based on the following estimates: (Click the icon to view the allowances provided.) Sandy's reported net credit sales of $4,200,000 for the current year. We present the company's ending balances of accounts receivable and the allowance for uncollectible accounts: i (Click the icon to view the t-accounts.) Read the requirements. Requirement a. Compute the balance required in the allowance for uncollectible accounts. Sandy's Downtown Properties: Aged Schedule of Accounts Receivable Totals Past Due Current 1-30 Days 31-60 Days 61-90 Days Over 90 Days Totals Allowance % % Allowance needed % % % % Data table Customer Crazy Consultants Whitney Company Lamber Laser Products Drake Industries Totals More info Sandy's Downtown Properties: Aged Schedule of Accounts Receivable Past Due Current $ 105,000 $ 1-30 Days 35,000 $ 9,000 25,000 31-60 Days 1,000 19,500 46,400 $ 61-90 Days Over 90 Days Totals Aging Category Current Allowance Provided 3% $ 141,000 1-30 days past due 8% $ 69,000 97,500 31-60 days past due 9% 12,800 30,500 197,000 11,100 281,200 61-90 days past due 30% 41,600 Over 90 days past due 55% $ 114,000 $ 60,000 $ 66,900 $ 43,300 $ 277,100 $ 561,300 Print Done Totals Allowance % Allowance needed % % % % % Requirement b. Prepare the journal entry to record the bad debt provision for the current year (Record debits first then credits Exclude ex Calculator More info Accounts Receivable Ending Balance 561,300 Allowance for Uncollectible Accounts 116,000 Unadjusted Ending Balance
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