The September30,2017,records of Perfecto Communications include these accounts:

Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . .	$250,000
Allowance for Doubtful Accounts . . . . . . . . . . . . . . . . . . .	(8,300)

During the year,

Perfecto Communications estimates doubtful-account expense at 1% of credit sales. At year-end (December 31), the company ages its receivables and adjusts the balance in the Allowance for Doubtful Accounts to correspond to the aging schedule. During the last quarter of 2017, the company completed the following selected transactions:

Nov 30

Wrote off as uncollectible the $1,300 account receivable from Brown Carpets and the $400 account

receivable from Priceless Antiques.

Dec 31

Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end,

based on the aging of receivables.

	Age of Accounts
Accounts Receivable	1-30 Days	31-60 Days	61-90 Days	Over 90 Days
$236,000	$135,000	$55,000	$10,000	$36,000
Estimated percent uncollectible	0.2%	2%	15%	35%

Requirement 1. Record the transactions for the last quarter of 2017 in the journal. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.)

Wrote off as uncollectible the $1,300 account receivable from Brown Carpets and the $400 account receivable from Priceless Antiques

.

Journal Entry
Date		Accounts	Debit	Credit
Nov	30

Adjusted the Allowance for Doubtful Accounts and recorded doubtful-account expense at year-end, based on the aging of receivables.

Journal Entry
Date		Accounts	Debit	Credit
Dec	31

Requirement 2. Prepare a T-account for Allowance for Doubtful Accounts with the appropriate beginning balances. Post the entries from Requirement 1 to that account.

Open the T-account by posting the beginning balance. Then post the entries to the Allowance for Doubtful Accounts T-account and calculate the ending balance.

Allowance for Doubtful Accounts

Requirement 3.will report its accounts receivable in a comparative balance sheet for

2016

and

2017

.

Use the three-line reporting format. At

December

31,

2016

,

the company's Accounts Receivable balance was

$ 213 comma 000

,

and the Allowance for Doubtful Accounts stood at

$ 4 comma 700

.

	Perfecto Communications
	Comparative Balance Sheet (partial)
	December 31, 2017 and 2016

		2017
Less:

2016

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