Marigold Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Marigold's Accounts Receivable account was $588,400 and Allowance for Doubtful Accounts had a credit balance of $43.590. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) Amount $317.700 113,000 82,100 41.600 18.500 15,500 Probability of Collection 0.97 0.90 0.86 0.81 0.51 0.00

Marigold Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Marigold's Accounts Receivable account was $588,400 and Allowance for Doubtful Accounts had a credit balance of $43.590. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Less than 16 days Between 16 and 30 days Between 31 and 45 days Between 46 and 60 days Between 61 and 75 days Over 75 days (to be written off) Amount $317.700 113,000 82,100 41.600 18.500 15,500 Probability of Collection 0.97 0.90 0.86 0.81 0.51 0.00

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.2: Writing Off And Collecting Uncollectible Accounts Receivable

Problem 1AYU

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In addition to this, please post to the allowance these 2022 events: Allowance for Doubtful Accounts 2021 12/31 Bal 7900 12/31 37015 12/31 Bal 44915 2022 DATE? ??? 5/1 ??? As well as: Journalize the adjusting entry for bad debts at December 31, 2022, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,200 and the aging schedule indicates that total estimated bad debts will be $34,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)