Aging of Accounts Receivable Waffle Company's accounts receivable reveal the following balances: Age of Accounts Current.... 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Receivable Balance $720,000 395,000 105,000 52,000 13,000 The credit balance in Loss Allowance is now $42,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible: Current.. 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due 0.5% 3.0 16.0 52.5 92.0 Prepare an aging schedule for the accounts receivable, and give the journal entry for recording the necessary change in the loss allowance account.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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E 7-6
LO3
Aging of Accounts Receivable
Waffle Company's accounts receivable reveal the following balances:
Age of Accounts
Current...
1-30 days past due
31-60 days past due
61-90 days past due
91-120 days past due
Receivable Balance
$720,000
395,000
Current.
1-30 days past due
31-60 days past due
61-90 days past due
91-120 days past due
105,000
52,000
13,000
The credit balance in Loss Allowance is now $42,000. After a thorough analysis of its collection
history, the company estimates that the following percentages of receivables will eventually prove
uncollectible:
0.5%
3.0
16.0
52.5
92.0
Prepare an aging schedule for the accounts receivable, and give the journal entry for recording the
necessary change in the loss allowance account.
Transcribed Image Text:E 7-6 LO3 Aging of Accounts Receivable Waffle Company's accounts receivable reveal the following balances: Age of Accounts Current... 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due Receivable Balance $720,000 395,000 Current. 1-30 days past due 31-60 days past due 61-90 days past due 91-120 days past due 105,000 52,000 13,000 The credit balance in Loss Allowance is now $42,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible: 0.5% 3.0 16.0 52.5 92.0 Prepare an aging schedule for the accounts receivable, and give the journal entry for recording the necessary change in the loss allowance account.
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