You have been employed by Emerson Company to help them with the accounts receivable and determine the bad debt allowance. They have provided you with the following information:

Customer Account Balance @ 12/31/2019 Invoices and Dates

Amerson Company 10,575 3325 12/10/10 7250 9/25/19

Buick Organization 13,525 9,925 11/30/19 2350 10/15/19 1250 8/15/19

Colorado Trail Company 9560 5000 12/25/19 4560 12/1/19

Devonshire Electric 10,800 4425 11/24/19. 6375 10/1/19

Franklin Bank 8,600 3100 9/20/19 5,500 9/12/19

Graphic Packaging 8,310 2750 12/7/19 3,330 11/20/19 2230 10/15/19

Required:

1. Prepare an accounts receivable aging schedule using the information above.

Based on the company's history they have provided you their experience with uncollectible accounts based on the age of the invoice.

Age of Account Uncollectible Percentage

0-30 Days 0.50%

31-60 Days 1.75%

61-90 Days 3.00%

91-120 Days 11.00%

Over 120 Days 55%

Required:

2. Using the schedule prepared in #1, determine the allowance for Bad Debt balance as of December 31, 2019

3. The company has asked you to prepare the year end adjusting entry. The balance in the Allowance for Bad Debt accounts was a credit balance of $2500 before adjustment.

Emerson Company

Accounts Receivable Aging Report

December 31, 2019

Customer Total Receivable 0-30 Days 31-60 Days 61-90 Days 91-120 Days. Over 120 Days

Amerson

Buick

Colorado

Devonshire

Franklin

Graphic

2.

0-30 Days - 0

31-60 - 0

61-90 Days - 0

91-120 Days - 0

+120 Days - 0

3.

Bad Debt expense

Allowance for Bad Debts