AB 116 WEEK 2
Problem 9 4A
Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.
Calculate the total estimated bad debts based on the below information.
Number of Days Outstanding
Total 0-30 31-60 61-90 91-120 Over 120
Accounts receivable 303,800 97,300 66,300 59,600 43,600 $37,000
% uncollectible 2% 5% 6% 9% 21%
Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $7,500 debit.
Of the above accounts, $5,300 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
The company collects $5,300 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection.
USA 
India