Pharoah Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end.
Calculate the total estimated uncollectibles based on the below information.
Accounts receivable
Total
$210,500
% uncollectible
Estimated Bad debts
$
0-30
31-60
$80,200
2%
$47,800
Number of Days Outstanding
61-90
$40,200
91-120
$24,500
Over 120
$17,800
5%
6%
9%
21%
$
$
$
$
eTextbook and Media
List of Accounts
(b) Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,300 debit.
(c) Of the above accounts, $5,200 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
(d) The company collects $5,200 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
