Question

percent uncollectible 1% 3% 5% 8% 12% customer accounts receivable days past due bcc company $ 4,400 12 lannister company 1,400 0 mike properties 5,400 114 ted reeves 700 71 jen steffens 2,400 39 create an aging of accounts receivable schedule of accounts receivable by age similar to the table given above. calculate the estimated balance for the allowance for doubtful accounts. assuming an unadjusted credit balance of $140, record the required adjustment to the allowance for doubtful accounts.

Answer 1

An aging of accounts receivable schedule categorizes accounts receivable based on how overdue they are. To calculate the estimated balance for the allowance for doubtful accounts, multiply each accounts receivable amount by the corresponding percent uncollectible and sum them up. The required adjustment to the allowance for doubtful accounts is a debit for $140.

Step-by-step explanation:

An aging of accounts receivable schedule categorizes accounts receivable based on how overdue they are. The table provided shows the customer, accounts receivable, and days past due for each account. To calculate the estimated balance for the allowance for doubtful accounts, we multiply each accounts receivable amount by the corresponding percent uncollectible and sum them up.

For example, for BCC Company with $4,400 in accounts receivable and 12 days past due, we multiply $4,400 by 3% (since it falls in the 3% uncollectible category) to get $132. We repeat this calculation for each account and add up all the amounts to get the estimated balance for the allowance for doubtful accounts.

Since the unadjusted credit balance for the allowance for doubtful accounts is $140, we need to record a debit adjustment for $140 to bring the balance to zero.