Question 6: The following selected information is from ImagineCorporation’s partial aging schedule at the end of August:
Number of Days Outstanding: Accounts Receivable: Estimated Percentage Uncollectible: EstimatedUncollectible Accounts
0-30 days $280, 000 1%
31-60 days $90,000 3%
61-90 days $45,000 10%
Over 90 days $18,000 15%
Total: $433,000
The unadjusted balance in Allowance for Doubtful Accounts is adebit of $4,300.
Required
(a) Complete the aging schedule and calculate the totalestimated uncollectible accounts from the above information.
(b) Prepare the adjusting journal entry to record the bad debtsfor the month using the information determined in part (a)
(c) In September, management determined that $4,200 of theoutstanding receivables were uncollectible. Prepare the journalentry 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). Preparethe journal entry(ies) to record the collection.
