Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $ 735,000 1% 31-60 days 290,000 61-90 days 111,000 15 91-120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On December 31, journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning balance of $89,000 and the company uses the analysis of receivables method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31:
Customer
Amount
Kim Abel
$ 24,300
Lee Drake
31,195
Jenny Green 29,715
Mike Lamb
17,890
Total
$103,100
The company prepared the following aging schedule for its accounts receivable on December 31:
Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts
0-30 days
$ 735,000
1%
31-60 days
290,000
61-90 days
111,000
15
91-120 days
70,000
30
More than 120 days
94,000
60
Total receivables
$1,300,000
Transcribed Image Text:Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $ 735,000 1% 31-60 days 290,000 61-90 days 111,000 15 91-120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000
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