2 Prepare a schedule to estimate an appropriate year end bal

2. Prepare a schedule to estimate an appropriate year end balance for the Allowance for Doubiful Accounts 1-30 31-90 90 Total Accounts Receivable Estimated Uncollectible (%) Estimated Uncollectible ($) a. Prepare the December 31 adjusting entry (f no entry is required for a transaction/event, select \"No Journal Entry Required\" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits Date Dec 3 General Journal Debit Credit htrps m?

Solution

Req 1. Bad debts expense Account Dr. (130000*0.25%) 325         Allowance for doubtful accounts 325 Req 2: 01-30 days 31-90 days More than 90 Total Accounts receivable 84000 10000 5000 99000 Estimated Uncollectibles 11% 22% 44% Estimated Uncollectible $ 9240 2200 2200 13640 Req 3: Required balance in Allowance at end 13640 Less: Existing balance in Allowance 2100 Bad debt expense 11540 Bad debts expense Account Dr. 11540     Allowance for uncollectible Account 11540