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Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $7,000. The

Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $7,000.

The company produced the following information from aging its accounts receivable at year end. Complete the aging schedule and calculate the total estimated uncollectible accounts. (Round answers to 0 decimal places, e.g. 5,275.)

Number of Days Outstanding
Total 030 3160 6190 91120
Accounts receivable $630,000 $390,000 $120,000 $80,000 $40,000
Estimated % uncollectible 2% 5% 10% 30%
Estimated uncollectible accounts $

$

$

$

$

1. Record the bad debt adjusting entry using the information determined in part (a).

2. In the following year, $15,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts.

3. The company collects $4,000 of the $15,000 of accounts that was determined to be uncollectible in part (c). The company also expects to collect an additional $1,000. Record the journal entry (or entries) to restore the accounts receivable and the cash collected. Collection of the $1,000 is expected in the near future.

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