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Question
A partially completed aging of receivables schedule for Lindy Designs follows:
| | Estimated Uncollectible Accounts | ||
| Age Interval | Balance | Percentage | Amount |
| Not past due | $550,000 | 2.50% | |
| 1–30 days past due | 96,500 | 4.00 | |
| 31–60 days past due | 43,750 | 9.50 | |
| 61–90 days past due | 22,250 | 16.00 | |
| 91–180 days past due | 5,600 | 31.00 | |
| 181–365 days past due | 3,100 | 60.00 | |
| Over 365 days past due | 1,250 | 95.00 | |
| Total | $722,450 | | |
a. Complete the schedule and determine the total estimate of uncollectible accounts. Show amounts to the nearest cent (do not round).
b. If Allowance for Doubtful Accounts has an unadjusted credit balance of $9,700, record the adjusting entry for bad debt expense for the year.
c. If Allowance for Doubtful Accounts has an unadjusted debit balance of $9,700, record the adjusting entry for bad debt expense for the year.
Answer
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