Problem 4.) During 2024, the company provides services of $260,500 on account. Of this
amount, $42,550 remains uncollected at the end of the year. An aging schedule as of December
31, 2023, is provided below.
Age Group
Amount
Receivable
Estimated
Percent
Uncollectible
Not yet due
$24,000
5%
0-30 days past due
12,500
10%
31-60 days past due
4,500
20%
More than 60 days
past due
1,550
40%
Total
$42,550
Required:
1. Calculate the allowance for uncollectible accounts.
2. Record the December 31, 2024 adjustment, assuming the balance of Allowance for
Uncollectible Accounts before adjustment is $600 (credit).
3. Record the December 31,2024 adjustment assuming the balance of Allowances for
Uncollectible Accounts before adjustment is $600 (debit).