* View the tutorial, then complete the worksheet, replacing the question marks below with formulas. Required: (a) Based on the information given below, calculate the estimate of the amount of uncollectible accounts. (b) Prepare the adusting entry to record bad debt expense and adjust the Allowance account. (c) Show how Net accounts receivable would be shown on the Balance Sheet for the company. Given Information:* Answers: Accounts (a) Estimated Amount Uncollectible Age Group Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Receivable 72,000 31,000 10,000 4,000 9,000 126,000 Estimated Percent Uncollectible 5% 10% 20% 40% 80% 3,600 3,100 2,000 1,600 7,200 17,500 (b) Adjusting entry Bad Debt Expense Allowance for Uncollectible Accounts 1,200 credit 16300 ? Allowance for Uncollectible Accounts 16300 ? (c) Net accounts receivable Accounts Receivable Less: Allowance for Uncollectible Accounts Net Accounts Receivable 126,000 (17,500) 108,500 * Use the term debit or credit (lower case) for the balance of Allowance for Uncollectible Accounts Revise your worksheet to reflect these updated assumptions then answer the questions that follow. You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end. Age Group Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Over 90 days past due Accounts Receivable $ 80,000 35,000 18,000 12,000 13, $158,000 Estimated Percent Uncollectible 5% 10% 20% 40% 80% Allowance for Uncollectible Accounts 1,600 Credit After reviewing the data, you note the 'not yet due' category is overstated by 20%, while the 'Over 90 days' category is understated by 20%, (this error also caused the AR balance on the schedule to not equal the amount of Accounts Receivable on the balance sheet). Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? Accounts Receivable $ 158,000 39,700 Allowance for Uncollectible Accounts $ 2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 1 Bad Debt Expense 14,500 Allowance for Uncollectible Accounts 14,500
