W 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. Accounts Age Group Not yet due 1-30 days past due 31-60 days past due 61-90 days past due Receivable Estimated Percent Uncollectible $ 92,000 58 41,000 10% 30,000 20 24,000 40% Over 90 days past due 19,000 80% $206,000 Allowance for Uncollectible Accounts 2,200 Credit After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%, Also, the "Over 90 days" category is understated and needs to increase by 20%. Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this 1 of 2 Prev Next > Allowance for Uncollectible Accounts 2,200 Credit After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days" category is understated and needs to increase by 20%. 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? Answer is complete but not entirely correct. Accounts Receivable $ 166,500 Allowance for Uncollectible Accounts $ 37,300 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.) No Transaction 3 General Journal Debit Credit 3. Which statement is true regarding the effect of the Allowance account being shown incorrectly as a credit rather than as a debit balance in the original account analysis? The error caused the journal entry to require a credit to Bad Debts Expense rather than a debit. O Correcting the error increased the amount of Bad Debt Expense recorded for the period. Correcting the error decreased the amount of Bad Debt Expense recorded for the period. The Allowance account and the adjustment were not affected by the original misstatement, as it was only an estimate.