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annachristine · Jun 9, 2011, 08:51 PM

How do I post Accounting for uncollectible accounts using the allowance method and reporting receivables on the balance sheet.
Accounts Receivable 146,00
Allowance for uncollectible accounts (credit balance) 3,300
Dec 28th wrote off accounts reeivable as uncollectible 1,700, 1,000, 400
Dec 31st Recorded uncollectible account expense based on the aging of accounts receivable as follows:
AR 1 - 30 days 31-60 days 61-90 days over 90days
166,000 100,000 40,000 16,000 10,000
Est % Uncollectible 0.1% 1% 10% 30%
I need to Journalize the transactions, Open the allowance for uncollectible accoutns and show how it should be reported on it Dec 31st balance sheet Using three line format

Just Looking · Jun 10, 2011, 05:53 AM

Please read this announcement.

Announcement:

We will check your answers and help you if you will do the following:

1. Post your Dec 28th entry to write off the uncollectibles.
2. Compute the amount of uncollectibles on your aging. For example, it is estimated that .1% of the $100,000 is not collectible. In total, how much is estimated to be uncollectible?
3. What adjustment is needed to bring the allowance to your new estimate?

Once you answer those three questions, we can talk about how it should be reported. Thanks.