Required information [The following information applies to the questions displayed below.] On December 31, Jarden Co's Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 840,000 Age of Accounts Receivable Expected Percent Uncollectible 1.35% Not yet due 336,000 67,200 33,600 13,440 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 2.10 6.60 33.25 69.00 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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### Required Information

#### Jarden Co.'s Allowance for Doubtful Accounts

On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a schedule of its December 31 accounts receivable by age.

| Accounts Receivable | Age of Accounts Receivable | Expected Percent Uncollectible |
|---------------------|-----------------------------|-------------------------------|
| $840,000            | Not yet due                 | 1.35%                         |
| 336,000             | 1 to 30 days past due       | 2.10%                         |
| 67,200              | 31 to 60 days past due      | 6.60%                         |
| 33,600              | 61 to 90 days past due      | 33.25%                        |
| 13,440              | Over 90 days past due       | 69.00%                        |

1. **Prepare the Adjusting Entry**: To record bad debts expense at December 31.

   - **Note:** Round percentage answers to the nearest whole percent.
   - **Do not round intermediate calculations.**

**Action Item**: 

- **View Transaction List**: Access detailed information about individual transactions.

**Journal Entry Worksheet**

- **Record the Estimated Bad Debts**: Complete the journal entry worksheet to reflect the calculated bad debts.

This table provides a breakdown of accounts receivable based on their age and the expected percentage deemed uncollectible. The purpose is to guide adjustments for the allowance of doubtful accounts, ensuring accurate financial statements.
Transcribed Image Text:### Required Information #### Jarden Co.'s Allowance for Doubtful Accounts On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,500. Jarden prepares a schedule of its December 31 accounts receivable by age. | Accounts Receivable | Age of Accounts Receivable | Expected Percent Uncollectible | |---------------------|-----------------------------|-------------------------------| | $840,000 | Not yet due | 1.35% | | 336,000 | 1 to 30 days past due | 2.10% | | 67,200 | 31 to 60 days past due | 6.60% | | 33,600 | 61 to 90 days past due | 33.25% | | 13,440 | Over 90 days past due | 69.00% | 1. **Prepare the Adjusting Entry**: To record bad debts expense at December 31. - **Note:** Round percentage answers to the nearest whole percent. - **Do not round intermediate calculations.** **Action Item**: - **View Transaction List**: Access detailed information about individual transactions. **Journal Entry Worksheet** - **Record the Estimated Bad Debts**: Complete the journal entry worksheet to reflect the calculated bad debts. This table provides a breakdown of accounts receivable based on their age and the expected percentage deemed uncollectible. The purpose is to guide adjustments for the allowance of doubtful accounts, ensuring accurate financial statements.
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