es You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end. Age Group Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Accounts Receivable Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts 2,500 Credit After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days" category is understated and needs to increase by 20%. Accounts Receivable $98,000 44,000 36,000 30,000 22,000 $230,000 Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. View transaction list Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? i Estimated Percent Uncollectible 5% No A $ Transaction 1 10% 20% 2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 40% 80% 48,640 View journal entry worksheet General Journal Bad Debt Expense Allowance for Uncollectible Accounts. Debit 48,640 Credit 45,120
es You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end. Age Group Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Accounts Receivable Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts 2,500 Credit After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days" category is understated and needs to increase by 20%. Accounts Receivable $98,000 44,000 36,000 30,000 22,000 $230,000 Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. View transaction list Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information? i Estimated Percent Uncollectible 5% No A $ Transaction 1 10% 20% 2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 40% 80% 48,640 View journal entry worksheet General Journal Bad Debt Expense Allowance for Uncollectible Accounts. Debit 48,640 Credit 45,120
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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]
nces
You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year
end.
Age Group
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Accounts Receivable
Allowance for Uncollectible Accounts
Accounts
Receivable
$98,000
44,000
36,000
30,000
22,000
$230,000
Allowance for Uncollectible Accounts
2,500 Credit
After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days"
category is understated and needs to increase by 20%.
Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this
account is a credit, the accountant hadn't noticed the issue.
View transaction list
Estimated Percent
Required:
1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable
and the Allowance for Uncollectible Accounts based on the above information?
No
A
Uncollectible
5%
$
Transaction
1
10%
20%
40%
80%
2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a
particular transaction/event, select "No Journal Entry Required" in the first account field.)
48,640
View journal entry worksheet
General Journal
Bad Debt Expense
Allowance for Uncollectible Accounts
Debit
48,640
Credit
45,120
Ⓡ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d13a3f9-65b8-4747-9f71-a51d29a24232%2Fad492b9a-bb79-4c20-9eb1-f3a0b078f4f0%2Fx9xqdi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:t
]
nces
You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year
end.
Age Group
Not yet due
1 to 30 days past due
31 to 60 days past due
61 to 90 days past due
Over 90 days past due
Accounts Receivable
Allowance for Uncollectible Accounts
Accounts
Receivable
$98,000
44,000
36,000
30,000
22,000
$230,000
Allowance for Uncollectible Accounts
2,500 Credit
After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days"
category is understated and needs to increase by 20%.
Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this
account is a credit, the accountant hadn't noticed the issue.
View transaction list
Estimated Percent
Required:
1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable
and the Allowance for Uncollectible Accounts based on the above information?
No
A
Uncollectible
5%
$
Transaction
1
10%
20%
40%
80%
2. Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a
particular transaction/event, select "No Journal Entry Required" in the first account field.)
48,640
View journal entry worksheet
General Journal
Bad Debt Expense
Allowance for Uncollectible Accounts
Debit
48,640
Credit
45,120
Ⓡ
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