John Deere Widgets is a US corporation involved in the manufactures of widgets for agricultural machinery, heavy equipment, and diesel engines. John Deere Widgets categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $442,000; estimated uncollectible = 10%. 2. Accounts 1-30 days past due = $55,200; estimated uncollectible = 13%. 3. Accounts 31-90 days past due = $44,200; estimated uncollectible = 17% 4. Accounts more than 90 days past due = $33,200; estimated uncollectible = 20%. On 12/31 of the current year, before recording any adjustments, the John Deere Widgets has a credit balance of $29,000 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31 balance for the John Deer Widgets' allowance for uncollectible accounts. 2. What is the journal entry that John Deere Widgets should record to adjust its allowance for uncollectible accounts? 3. Please calculate John Deere Widgets' 12/31 net accounts receivable balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What journal entry should the company record to adjust its allowance for uncollectible accounts? Note: 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 < Prev 5 of 5 www Next > QQ
John Deere Widgets is a US corporation involved in the manufactures of widgets for agricultural machinery, heavy equipment, and diesel engines. John Deere Widgets categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts. 1. Accounts not yet due = $442,000; estimated uncollectible = 10%. 2. Accounts 1-30 days past due = $55,200; estimated uncollectible = 13%. 3. Accounts 31-90 days past due = $44,200; estimated uncollectible = 17% 4. Accounts more than 90 days past due = $33,200; estimated uncollectible = 20%. On 12/31 of the current year, before recording any adjustments, the John Deere Widgets has a credit balance of $29,000 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31 balance for the John Deer Widgets' allowance for uncollectible accounts. 2. What is the journal entry that John Deere Widgets should record to adjust its allowance for uncollectible accounts? 3. Please calculate John Deere Widgets' 12/31 net accounts receivable balance. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What journal entry should the company record to adjust its allowance for uncollectible accounts? Note: 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 < Prev 5 of 5 www Next > QQ
Chapter1: Financial Statements And Business Decisions
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John Deere Widgets is a US corporation involved in the manufactures of widgets for agricultural machinery, heavy equipment, and
diesel engines. John Deere Widgets categorizes its accounts receivable into four age groups for purposes of estimating its allowance
for uncollectible accounts.
1. Accounts not yet due = $442,000; estimated uncollectible = 10%.
2. Accounts 1-30 days past due = $55,200; estimated uncollectible = 13%.
3. Accounts 31-90 days past due = $44,200; estimated uncollectible = 17%
4. Accounts more than 90 days past due = $33,200; estimated uncollectible = 20%.
On 12/31 of the current year, before recording any adjustments, the John Deere Widgets has a credit balance of $29,000 in its
allowance for uncollectible accounts.
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Required:
1. Estimate the appropriate 12/31 balance for the John Deer Widgets' allowance for uncollectible accounts.
2. What is the journal entry that John Deere Widgets should record to adjust its allowance for uncollectible accounts?
3. Please calculate John Deere Widgets' 12/31 net accounts receivable balance.
Required 1
Complete this question by entering your answers in the tabs below.
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What journal entry should the company record to adjust its allowance for uncollectible accounts?
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Step 1 Given
- Balance in allowance for uncollectible accounts
- Journal entry to record adjustment of allowance for uncollectible accounts.
- Net accounts receivable balance
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