FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Entry for Uncollectible Accounts

Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are given below.


Age Interval

Balance
Estimated Uncollectible
Accounts Percent
  Estimated Uncollectible
Accounts Amount
Not past due $892,000 3/4 %   $6,690  
1-30 days past due 285,000 1.00     2,850  
31-60 days past due 101,000 8.00     8,080  
61-90 days past due 63,000 16.00     10,080  
91-180 days past due 43,100 50.00     21,550  
Over 180 days past due 17,700 80.00     14,160  
Total $1,401,800     $63,410  

 

Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $5,140 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank.

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