Imagine Corporation prepares an aging schedule for its accounts receivable at the end of each...
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Imagine Corporation prepares an aging schedule for its accounts receivable at the end of each month and records bad debts expense monthly. The following selected information is from Imagine's partial aging schedule at the end of August: Estimated percentage uncollectible Number of days outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Accounts receivable $280,000 90,000 45,000 18,000 $433,000 1% 3% 10% 15% The unadjusted balance in Allowance for Doubtful accounts is a debit of $4300. Instructions: Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information. b. Prepare the adjusting journal entry to record the bad debts for the month using the information determined in part a. c. In September, management determined that $4,200 if the outstanding receivables were uncollectible. Prepare the journal entry to write off the uncollectible amount. d. Imagine Corporation subsequently collected $2,300 of the $4,200 that was determined to be uncollectible in part c. Prepare the journal entries to record the collection
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