The accounts receivable listing of Houmans Inc. shows thefollowing on December 31, 2018. The general ledger showed a $350credit balance in Allowance for Doubtful Accounts before adjustmentName of customer Invoice date Amount Cycles Inc. May 5, 2018 $950First Corporation August 12, 2018 500 First Corporation December10, 2018 550 Garron Inc. December 15, 2018 200 Heartwell Inc.September 15, 2018 480 Heartwell Inc. July 5, 2018 915 Leash Inc.March 5, 2018 575 Sign Corporation November 15, 2018 825 SparesInc. November 18, 2018 325 Summer Corporation October 10, 2018 650Required: 1. Prepare an aging of accounts receivable at December31, 2018 2. Compute estimated loss based on the following: Age(days) Estimated Loss Percentage 1-30 2% 31-60 3% 61-90 5% 91-12012% 121-150 15% Over 150 50% 3. Prepare journal entry to record thebad debt expense for the year.
