Doane Cosmetics provides plastic surgery primarily to hide the appearance of unwanted scars and other blemishes. During 2024, the company provides services of $390,000 on account. Of this amount, $40,000 remains uncollected at the end of the year. An aging schedule as of December 31, 2024, follows.
Age Group Amount Receivable Estimated Percent Uncollectible
Not yet due $20,000 4%
0 to 30 days past due $9,000 6%
31 to 60 days past due $6,000 12%
More than 60 days past due $5,000 30%
Total $40,000
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $200 (debit).
3. On April 3, 2025, a customer’s account balance of $300 is written off as uncollectible. Record the write-off.
4. On July 17, 2025, the customer whose account was written off in requirement 3 unexpectedly pays $100 of the amount but does not expect to pay any additional amounts. Record the cash collection.