Wiggins Corporation utilizes an accounting software package that is capable of producing a detailed aging of outstanding accounts receivable. Following is the aging schedule as of December 31, 2022.

AGE (days): Amount Outstanding:

0-30 1,300,000

31-60 600,000

61-120 150,000

Over 120 75,000

Casper Wiggins has owned and operated Wiggins Corporation for many years and has a very good sense of the probability of collection of outstanding receivables, based on an aging analysis. The following table reveals the likelihood of collection:

AGE (days): Probability of collection:

0-30 97%

31-60 91%

61-120 72%

Over 120 30%

1. Prepare the necessary journal entry to update the allowance for uncollectibles, assuming the balance prior to preparing the aging was a $15,000 credit. (Worksheet B)
2. Prepare the necessary journal entry to update the allowance for uncollectibles, assuming the balance prior to preparing the aging was a $5,000 debit. (Worksheet
3. Assume one of Wiggins customers has filed for banruptcy protection. Prepare the journal entry to write off the account, $22,000. (Worksheet B)
4. Explain why the actual write-off will not result in a reduction of Wang Corporation's income. (Worksheet B)
5. Wiggins accepts credit card payments from customers. Charges on USExpress cards were $3,000. This card is not a bank (debit) card, and settlement does not occur until approximately two weeks following the date of the transaction. USExpress charges a 4% fee, and this amount is recorded on the day of sale. Prepare the journal entry for the credit card sales. (Worksheet B)
6. Prepare the journal entry for the eventual collection of the USExpress charges. (Worksheet B)
7. On August 1, 2022, Wiggins loaned a vendor cash by issuing a note receivable. The note receivable was for $17,000, 8 months, 4%. Prepare the journal entries for the note issuance on August 1, the adjusting entry on December 31, 2022, and the receipt of payment on March 31, 2023. (Worksheet C)