Finan tioncomflowconnecthtml ignment Hel Required informati

Finan: × tion.com/flow/connect.html ignment Hel Required information Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2, P3 [The following information applies to the questions displayed below. Jarden Company has credit sales of $3,600,000 for year 2017. On December 31, 2017, the company\'s Allowar Doubtful Accounts has an unadjusted credit balance of $14.500: Jarden prepares a schedule of its Decemben accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each a category that will become uncollectible. This information is summarized here Expected Percen Uncollectible 1.25 2.00 6.s0 32.75 68.00 December 31, 2017 Age of Accounta Receivable ts Receivable Not yet due 830,000 254,000 86,000 38,000 12,000 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due over 90 days past due Problem 7-3A Part 1 Required 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of acco method. AccountsPercent uncollecti ?11 F3 F4 8,

Solution

Date

Accounts receivable		Percent uncollectible (%)		Estimated uncollectible
Not due:	$830,000	x	1.25%	=	$10,375
1 to 30:	254,000	x	2%	=	$5,080
31 to 60:	86,000	x	6.50%	=	$5,590
61 to 90:	38,000	x	32.75%	=	$12,445
Over 90:	12,000	x	68%	=	$8,160
Estimated balance of allowance for uncollectibles		41650	credit
Date	General Journal	Debit	Credit
31-Dec	Bad debts expense	27,150		=41650-14500
	Allowance for doubtful accounts		27,150