Examine the following information about Weyakwin Inc. (Weyakwin):

i. Ending balance in allowance for uncollectible accounts on April 30, 2014 =

$102,000 (credit balance).

ii. Accounts receivable written off during the year ended April 30, 2015 = $97,000.

iii. Aging schedule for accounts receivable outstanding on April 30, 2015:

Required:

a. What amount of closing accounts receivable is estimated to be uncollectible on April 30, 2015?

b. Prepare the journal entry required to record the bad debt expense for Weyakwin for the year ended April 30, 2015.

c. What are some possible explanations for the change in the allowance account between April 30, 2014, and April 30, 2015?

Transcribed Image Text:

Account age Balance on April 30, 2015 Percent estimated to be uncollectible Current $432,000 1.25% 1-30 days overdue 168,000 4.50 31-60 days overdue 90,000 12.00 61-120 days overdue 60,000 50.00 More than 120 days overdue 90,000 80.00