Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncolle accounts. 1. Accounts not yet due = $104.000; estimated uncollectible = 15%. 2. Accounts 1-45 days past due = $14.400; estimated uncollectible = 20%. 3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%. Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncolle accounts. 1. Accounts not yet due = $104.000; estimated uncollectible = 15%. 2. Accounts 1-45 days past due = $14.400; estimated uncollectible = 20%. 3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%. Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please help with attached questions, thanks much.
![Exercise 7-13 (Algo) Calculate uncollectible accounts using the aging method; record adjustment [LO7-5,
7-6]
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible
accounts.
1. Accounts not yet due = $104,000; estimated uncollectible = 15%.
2. Accounts 1-45 days past due = $14,400; estimated uncollectible = 20%.
3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%.
Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Required 1 Required 2
Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
Balance in allowance for uncollectible accounts
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05848523-8d3f-47c3-aa28-13696e328ead%2F0ca592a1-8c04-4ecd-ab5c-10aa82e499b0%2Ff5f6loh_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 7-13 (Algo) Calculate uncollectible accounts using the aging method; record adjustment [LO7-5,
7-6]
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible
accounts.
1. Accounts not yet due = $104,000; estimated uncollectible = 15%.
2. Accounts 1-45 days past due = $14,400; estimated uncollectible = 20%.
3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%.
Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Required 1 Required 2
Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
Balance in allowance for uncollectible accounts
< Required 1
Required 2 >
![Exercise 7-13 (Algo) Calculate uncollectible accounts using the aging method; record adjustment [LO7-5,
7-6]
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible
accounts.
1. Accounts not yet due = $104,000; estimated uncollectible = 15%.
2. Accounts 1-45 days past due = $14,400; estimated uncollectible = 20%.
3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%.
Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Required 1 Required 2
What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
< 1
Record the adjustment to allowance for uncollectible accounts.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
< Required 1
Debit
Credit
View general journal
Required 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05848523-8d3f-47c3-aa28-13696e328ead%2F0ca592a1-8c04-4ecd-ab5c-10aa82e499b0%2Fiij1xl_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 7-13 (Algo) Calculate uncollectible accounts using the aging method; record adjustment [LO7-5,
7-6]
Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible
accounts.
1. Accounts not yet due = $104,000; estimated uncollectible = 15%.
2. Accounts 1-45 days past due = $14,400; estimated uncollectible = 20%.
3. Accounts more than 45 days past due = $5,700; estimated uncollectible = 25%.
Before recording any adjustments, Dhaliwal has a debit balance of $25,700 in its allowance for uncollectible accounts.
Required:
1. Estimate the appropriate 12/31/2021 balance for Dhaliwal's allowance for uncollectible accounts.
2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?
Required 1 Required 2
What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts? (If no entry is required for a
transaction/event, select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
< 1
Record the adjustment to allowance for uncollectible accounts.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
< Required 1
Debit
Credit
View general journal
Required 2
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education