The schedule of accounts receivable by age shown below was prepared for the Custom Windows Shop at the end of the firm's fiscal year on July 31, 2016:

Custom Windows Shop

Schedule of Accounts Receivable by Age

July 31, 2016

1. Compute the estimated uncollectible accounts at the end of the year using these rates:
Current ......................... 1%
1-30 days past due ........... 4%
31-60 days past due ........ 14%
Over 60 days past due ..... 40%
2. As of July 31, 2016, there is a debit balance of $310.00 in Allowance for Doubtful Accounts. Compute the amount of the adjustment for uncollectible accounts expense that must be made as part of the adjusting entries.
3. In general journal form, record the adjustment for the estimated losses. Use Uncollectible Accounts Expense and Allowance for Doubtful Accounts.
4. On August 28, 2016, the account receivable of Jorge Urbina, amounting to $182, was recognized as uncollectible. Record this write-off in the general journal.
5. On September 21, 2016, a check for $250 was received from Barry King to apply on his $250 account, which had been written off as uncollectible on December 19, 2015. Record the reversal of the previous write-off in the general journal. The cash obtained has already been entered in the cash receipts journal.
6. Suppose that instead of aging the accounts receivable, the company estimated the uncollectible accounts to be 8 percent of the total accounts receivable on July 31. Assume also that Allowance for Doubtful Accounts has a credit balance of $125.00 before the adjusting entry. Give the general journal entry to record the adjustment for estimated losses from uncollectible accounts.
Analyze: Based on the percentages presented in Item 1, what is the average uncollectible rate for all accounts receivable?

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Past Due-Days Account Balance Current 1-30 31-60 Over 60 Alvarado, Steve Brass, Dennis Chang, Charles Cook, Elaine Edwards, Brad Kieffer, Carl All other accts.) Totals 300.00 S 175.00 S 125.00 608.00 196.00 38.00 632.00 264.00 120.00 196.00 38.00 400.00S 88.00 416.00S 216.00 264.00 3,600.00 4,610.00 8,286.00 1,894.00 830.00 S16.648.00 S8.81500 S4.389.00 S2.398.00 S1,046.00