Question

debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. Debts by using the age of each account. * Data Table Age of Accounts 1-30 Days Accounts Receivable $ 60,000 Estimated percent uncollectibles 0.5% 31-60 Days $ 40,000 3.0 % 61-90 Days $ 15,000 5.0% Over 90 Days $ 25,000 50.0 % Print Done < Answer. Clear All

Answer 1

Schedule

	1-30 days	31-60 days	61-90 days	over 90 days	Total balance
Account receivable	60000	40000	15000	25000	140000
% Uncollectible	0.5%	3%	5%	50%
$ Uncollectible	300	1200	750	12500	14750

Adjusting entry

Date	account and explanation	Debit	Credit
Dec 31	Bad debt expense (14750+13250)	28000
	Allowance for doubtful accounts		28000

Balance sheet presentation

Current assets
Account receivable	140000
Less: Allowance for doubtful accounts	-14750	125250