At December 31, 2018, the Accounts Receivable balance of Questor Application Inc is $190,000. The Allowance for Bad Debts account has a $6,110 debit balance. Questor Application Inc prepares the following aging schedule for its accounts receivable: (Click the icon to view the aging schedule.) Read the requirements. Requirement 1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. Begin by determining the target balance of Allowance for Bad Debts by using the age of each account. Age of Accounts Accounts Receivable Estimated percent uncollectible Estimated total uncollectible 31-60 Days 90,000 $ 65,000 0.9% 1-30 Days 2.0% 61-90 Days $ 30,000 $ 8.0% Over 90 Days 5,000 54.0% Total Balance

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by t…

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable ari…