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Showing the balances by age

Jones Company's accounts rec. show the balances by age:

Age of rec. Balance
0-30 days $600,000
31-60 days $175,000
61-120 days $70,000
more than 120days $10,000

The credit bal. in the allowance for uncollectible accts. is $2,500 and the bad debt exp. is $18,000 prior to any adj. journal entries. Jones uses the following percentages to compute the estimated amounts of rec. that will eventually prove not collectible: 0-30 days, 0.7% ; 31-60 days, 1.2% ; 61-120 days, 11% ; more than 120days, 65%.

Please help me prepare the adjusting journal entry

Solution Preview

Jones Company's accounts rec. show the balances by age:

Age of rec. Balance
0-30 days $600,000
31-60 days $175,000
61-120 days $70,000
more than 120days $10,000

The credit bal. in the allowance for uncollectible accts. is $2,500 and the bad debt exp. is $18,000 prior to any adj. journal entries. Jones uses ...

Solution Summary

This solution is comprised of a detailed explanation to prepare adjusting entries for Jones Company.

$2.19