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 $902,000 3/4 %   $6,765  
1-30 days past due 99,200 2     1,984  
31-60 days past due 45,100 6     2,706  
61-90 days past due 32,500 18     5,850  
91-180 days past due 23,500 42     9,870  
Over 180 days past due 17,100 65     11,115  
Total $1,119,400     $38,290  

Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,890 as of December 31.

Journalize the adjusting entry for uncollectible accounts as of December 31.

Dec. 31
 
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