E5-42. Estimating Uncollectible Accounts and Reporting Accounts Receivable Collins Company analyzes its accounts receivable at December 31 and arrives at the age categories below along with the percentages that are estimated as uncollectible. The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. Accounts Receivable Estimated Loss % 1% 2 Age Group 0-30 days past due 31-60 days past due 61-120 days past due 121-180 days past due Over 180 days past due Total accounts receivable. $110,000 40,000 27,000 14,000 9,000 $200,000 10 25 Written assignment: E5.42 (modified), p. 5-45 Modified Instructions: (Ignore textbook requirements) 1. Using the aging schedule in the exercise, calculate and report the ending balance of the Allowance for Uncollectible Accounts (Allowance for Doubtful Accounts). 2. If the beginning balance of the Allowance for Uncollectible Accounts is $1,100, and the ending balance is the amount calculated in (1) above, the difference is the amount by which the Allowance for Uncollectible Accounts needs to be adjusted. The needed increase to this Allowance account is an expense of the company. This expense is called Uncollectible Accounts Expense (Bad Debts Expense). Prepare the financial statement effects template (accounting equation & Net Income calculation) to show this adjustment. 3. What is the amount of net Accounts Receivable that would be reported on the Balance Sheet at December 31