A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible.?(a) Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar.? Estimated Uncollectible Accounts \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { ext { Estimated Uncollectible } } \\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { ext { Accounts } } Estimated Uncollectible Accounts Age Interval Balance Percentage Amount Not past due 5550 , 000 2.50 % 1 − 30 days past due 96 , 500 4.00 31 − 60 days past due 43 , 750 9.50 61 − 90 days past due 22 , 250 16.00 91 − 180 days past due 5 , 600 31.00 181 − 365 days past due 3 , 100 60.00 Over 365 days past due 1 , 250 95.00 Total $ 722 , 450 ‾ \begin{array}{|l|r|c|c|}\hline ext { Age Interval } & ext { Balance } & ext { Percentage } & ext { Amount } \\hline ext { Not past due } & 5550,000 & 2.50 \% & \\hline 1-30 ext { days past due } & 96,500 & 4.00 & \\hline 31-60 ext { days past due } & 43,750 & 9.50 & \\hline 61-90 ext { days past due } & 22,250 & 16.00 & \\hline 91-180 ext { days past due } & 5,600 & 31.00 & \\hline 181-365 ext { days past due } & 3,100 & 60.00 & \\hline ext { Over } 365 ext { days past due } & 1,250 & 95.00 & \\hline ext { Total } & \underline{\mathbf{\$ 7 2 2 , 4 5 0}} & & \\hline\end{array} Age Interval Not past due 1 − 30 days past due 31 − 60 days past due 61 − 90 days past due 91 − 180 days past due 181 − 365 days past due Over 365 days past due Total Balance 5550 , 000 96 , 500 43 , 750 22 , 250 5 , 600 3 , 100 1 , 250 $722 , 450 Percentage 2.50% 4.00 9.50 16.00 31.00 60.00 95.00 Amount (b) If Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for bad debt expense for the year.(c) If Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for bad debt expense for the year.

Question

A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible.?(a) Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar.?    Estimated Uncollectible   Accounts  \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Estimated Uncollectible } } \\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Accounts } }   Estimated Uncollectible   Accounts   Age Interval   Balance   Percentage   Amount   Not past due  5550 , 000 2.50 % 1 − 30  days past due  96 , 500 4.00 31 − 60  days past due  43 , 750 9.50 61 − 90  days past due  22 , 250 16.00 91 − 180  days past due  5 , 600 31.00 181 − 365  days past due  3 , 100 60.00  Over  365  days past due  1 , 250 95.00  Total  $ 722 , 450 ‾ \begin{array}{|l|r|c|c|}\hline 	ext { Age Interval }  &  	ext { Balance }  &  	ext { Percentage }  &  	ext { Amount } \\hline 	ext { Not past due }  &  5550,000  &  2.50 \%  &  \\hline 1-30 	ext { days past due }  &  96,500  &  4.00  &  \\hline 31-60 	ext { days past due }  &  43,750  &  9.50  &  \\hline 61-90 	ext { days past due }  &  22,250  &  16.00  &  \\hline 91-180 	ext { days past due }  &  5,600  &  31.00  &  \\hline 181-365 	ext { days past due }  &  3,100  &  60.00  &  \\hline 	ext { Over } 365 	ext { days past due }  &  1,250  &  95.00  &  \\hline 	ext { Total }  &  \underline{\mathbf{\$ 7 2 2 , 4 5 0}}  &   &  \\hline\end{array}  Age Interval   Not past due  1 − 30  days past due  31 − 60  days past due  61 − 90  days past due  91 − 180  days past due  181 − 365  days past due   Over  365  days past due   Total  ​  Balance  5550 , 000 96 , 500 43 , 750 22 , 250 5 , 600 3 , 100 1 , 250 $722 , 450 ​ ​  Percentage  2.50% 4.00 9.50 16.00 31.00 60.00 95.00 ​  Amount  ​ ​   (b) If Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for bad debt expense for the year.(c) If Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for bad debt expense for the year.

Leticia Molina · Accepted Answer

Final Answer :  (a)?    Estimated Uncollectible   Accounts  \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Estimated Uncollectible } } \\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { 	ext { Accounts } }   Estimated Uncollectible   Accounts   Age Interval   Balance   Percentage   Amount   Not past due  $ 550 , 000 2.50 % $ 13 , 750 1 − 30  days past due  96 , 500 4.00 3 , 860 31 − 60  days past due  43 , 750 9.50 4 , 156 61 − 90  days past due  22 , 250 16.00 3 , 560 91 − 180  days past due  5 , 600 31.00 1 , 736 181 − 365  days past due  3 , 100 60.00 1 , 860  Over  365  days past due  1 , 250 ‾ 95.00 1 , 188 ‾  Total  $ 722 , 450 ‾ $ 30 , 110 ‾ \begin{array} { | l | r | c | r | } \hline 	ext { Age Interval }  &  	ext { Balance }  &  	ext { Percentage }  &  	ext { Amount } \\hline 	ext { Not past due }  &  \$ 550,000  &  2.50 \%  &  \$ 13,750 \\hline 1 - 30 	ext { days past due }  &  96,500  &  4.00  &  3,860 \\hline 31 - 60 	ext { days past due }  &  43,750  &  9.50  &  4,156 \\hline 61 - 90 	ext { days past due }  &  22,250  &  16.00  &  3,560 \\hline 91 - 180 	ext { days past due }  &  5,600  &  31.00  &  1,736 \\hline 181 - 365 	ext { days past due }  &  3,100  &  60.00  &  1,860 \\hline 	ext { Over } 365 	ext { days past due }  &  \underline{1,250}  &  95.00  &  \underline{1,188} \\hline 	ext { Total }  &  \underline{\mathbf { \$ 7 2 2 , 4 5 0 }}  &   &  \underline{\mathbf { \$3 0 , 1 1 0 }} \\hline\end{array}  Age Interval   Not past due  1 − 30  days past due  31 − 60  days past due  61 − 90  days past due  91 − 180  days past due  181 − 365  days past due   Over  365  days past due   Total  ​  Balance  $550 , 000 96 , 500 43 , 750 22 , 250 5 , 600 3 , 100 1 , 250 ​ $722 , 450 ​ ​  Percentage  2.50% 4.00 9.50 16.00 31.00 60.00 95.00 ​  Amount  $13 , 750 3 , 860 4 , 156 3 , 560 1 , 736 1 , 860 1 , 188 ​ $30 , 110 ​ ​ ​ (b) Dec. 31 Bad Debt Expense 20,410Allowance for Doubtful Accounts 20,410?? Calculation of expense:Amount of calculated uncollectible accounts   $ 30 , 110 \quad \$ 30,110 $30 , 110 Less credit balance of account   9 , 700 \quad 9,700 9 , 700 Bad debt expense   $ 20 , 410 ‾ \underline{\$20,410} $20 , 410 ​ (c) Dec. 31 Bad Debt Expense 39,810Allowance for Doubtful Accounts 39,810? Calculation of expense:Amount of calculated uncollectible accounts   $ 30 , 110 \quad \$ 30,110 $30 , 110 Plus debit balance of account   9 , 700 \quad 9,700 9 , 700 Bad debt expense        $ 30 , 810 ‾ ~~~~~\underline{\$ 30,810}           $30 , 810 ​

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