View Policies Current Attempt in Progress Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $4,000. 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. Number of Days Outstanding 31-60 61 Total 0-30 $600,000 $370,000 $120,000 2% 5% Accounts receivable Estimated % uncollectible Estimated uncollectible accounts $ $ $ $ List of Accounts Record the bad debt adjusting entry using the information determined in part (a). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record estimate of uncollectible accounts.) List of Accounts In the following year, $15,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record writeoff of accounts receivable.) List of Accounts The company collects $4,500 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To reverse write off.) (To record collection of previously written off account.) List of Accounts View Policies Current Attempt in Progress Sheridan Company uses the allowance method to estimate uncollectible accounts receivable. The unadjusted balance in Allowance for Doubtful Accounts is a debit of $4,000. 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. Number of Days Outstanding 31-60 61 Total 0-30 $600,000 $370,000 $120,000 2% 5% Accounts receivable Estimated % uncollectible Estimated uncollectible accounts $ $ $ $ List of Accounts Record the bad debt adjusting entry using the information determined in part (a). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Debit Credit (To record estimate of uncollectible accounts.) List of Accounts In the following year, $15,000 of the outstanding accounts receivable is determined to be uncollectible. Record the write off of the uncollectible accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To record writeoff of accounts receivable.) List of Accounts The company collects $4,500 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (To reverse write off.) (To record collection of previously written off account.) List of Accounts
