View Policies Current Attempt in Progress Whispering Winds Trading is a merchandising wholesaler that sells to comer stores in the community. Lately, because of the economic conditions, some of Whispering Winds' customers have been experiencing financial difficulties and so Whispering Winds has to pay a great deal of attention to the collection of accounts receivable. Before any year-end adjustments, the balance in Whispering Winds' Accounts Receivable account was $651,000 and the Allowance for Doubtful Accounts had a credit balance of $32,000. The company uses an aging schedule to determine the total estimated uncollectible amounts at its year end, December 31: Probability of collection Days Account Outstanding Amount Less than 16 days $326,000 98% Between 16 and 30 days 138,000 90% Between 31 and 45 days 80,000 80% Between 46 and 60 days 56,000 70% Between 61 and 75 days 28,000 50% Over 75 days 23,000 10% Total $651,000 Calculate the balance in the Allowance for Doubtful Accounts based on the aging schedule. Days Account Outstanding Probability of collection Estimated percentage uncollectible Amount %6 $ 96 Less than 16 days % % % Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days 96 % % % Over 75 days % % Total $ List of Accounts Calculate the balance in the Allowance for Doubtful Accounts based on the aging schedule. Probability of collection Estimated percentage uncollectible Estimated Uncollectible accounts Amount % 96 96 % 96 % % % % % % % % % $ List of Accounts List of Accounts Prepare any necessary adjusting entry at the end of the year. (Credit account titles are automatically indented when the amount is entered. Do not indent manually) Credit Debit Account Titles and Explanation Date Dec. 31 List of Accounts Show how accounts receivable would be presented on the balance sheet. WHISPERING WINDS TRADING Partial Balance Sheet GOO + CHRW Receivables ./10 Question 5 of 5 Show wounts receivabu would be presented on the balance sheet WHISPERING WINDS TRADING Partial Balance Sheet Ust of Accounts Attempts: 0 ot 5 used to MacBook Air 30