13. The Brawn Company had a $400 credit balance in Allowance for Doubtful Accounts at December 31, 2007, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:
Current Accounts $140,000 1%
1â?"30 days past due 15,000 3%
31â?"60 days past due 12,000 6%
61â?"90 days past due 5,000 12%
Over 90 days past due 7,000 30%
Total Accounts Receivable $179,000
a) Prepare the Estimated Uncollectible schedule for each percentage.
b) Prepare the adjusting entry on December 31, 2007, to recognize bad debts expense.
Explain how to set up the schedule.
The solution explains how to prepare a estimated uncollectible schedule and pass the related adjusting journal entry