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Question
The partially completed aging of receivables schedule for Torme Designs follows:
| Estimated Uncollectible Accounts | |||
| Age Interval | Balance | Percentage | Amount |
| Not past due | $850,000 | 3.50% | |
| 1–30 days past due | 47,500 | 5.00 | |
| 31–60 days past due | 21,750 | 10.00 | |
| 61–90 days past due | 11,250 | 20.00 | |
| 91–180 days past due | 5,065 | 30.00 | |
| 181–365 days past due | 2,500 | 50.00 | |
| Over 365 days past due | 1,145 | 95.00 | |
| Total | $939,210 | ||
a. Complete the schedule and determine the total estimate of uncollectible accounts. Show amounts to the nearest cent (do not round).
b. Assuming Allowance for Doubtful Accounts has an unadjusted credit balance of $1,135, journalize the adjusting entry for the bad debt expense for the year.
Answer
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