Harmon, Inc. uses the aging of receivables method to account for the allowance of doubtful accounts and the recording of bad debt expense. Below is the aging of the accounts receivable along with the associated estimation of uncollectibility. a. Calculate the amount estimated to be uncollectible at the end of 2021. b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. Harmon, Inc - Accounts Receivable Aging Balances - December 31, 2021 Total1-30 Days31-60 Days61-90 Days91-120 DaysOver 120 Days Balances985,000536,000242,000115,00060,00032,000 Estimated Uncollectible Percentage 1%3%5%15%60% a.Calculation of uncollectible amount at December 31, 2021: Total b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. General Journal DateAccount Debit Credit Dec. 31 c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. General Journal DateAccount Debit Credit Dec. 31

Introduction:- A bad debt is a receivable that a customer will not pay to the company. Bad debt is…

Answered: Harmon, Inc. uses the aging of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 5PB: The following accounts receivable information pertains to Select Distributors. A. Determine the...

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Harmon, Inc. uses the aging of receivables method to account for the allowance of doubtful accounts and
the recording of bad debt expense. Below is the aging of the accounts receivable along with the associated
estimation of uncollectibility.

a. Calculate the amount estimated to be uncollectible at the end of 2021.
b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in
the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry.
c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in
the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry.

Harmon, Inc - Accounts Receivable Aging Balances - December 31, 2021
	Total	1-30 Days	31-60 Days	61-90 Days	91-120 Days	Over 120 Days
Balances	985,000	536,000	242,000	115,000	60,000	32,000

Estimated
Uncollectible
Percentage		1%	3%	5%	15%	60%

a.	Calculation of uncollectible amount at December 31, 2021:









	Total

b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in
the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry.

	General Journal
	Date	Account	Debit	Credit

	Dec. 31



c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in
the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry.

	General Journal
	Date	Account	Debit	Credit

	Dec. 31

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