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You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end.
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 Estimated Percent Age Group Receivable Uncollectible Not yet due $98,000 5% 1 to 30 days past due 44,000 10% 31 to 60 days past due 36,000 20% 61 to 90 days past due 30,000 40% Over 90 days past due 22,000 80% $230,000 1 nces Allowance for Uncollectible Accounts 2,500 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? Accounts Receivable Allowance for Uncollectible Accounts $ 48,640 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 A 1 Bad Debt Expense Allowance for Uncollectible Accounts Debit Credit 48,640 45,120
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