[Akhatoon]

Caplan Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense.
As of December 31, Caplan's accountant prepared the following data about ending receivables: $20,000 was not yet due (1 percent expected not to be collected), $10,000 was 1-60 days past due (4 percent expected not to be collected), and $2,000 was over 60 days past due (8 percent expected not to be collected).
At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $200.
Prepare Caplan's end-of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debit balance.

[qcmar24]

Caplan Corporation uses the accounts receivable aging method to account for Uncollectible Accounts Expense.
As of December 31, Caplan's accountant prepared the following data about ending receivables: $20,000 was not yet due (1 percent expected not to be collected), $10,000 was 1-60 days past due (4 percent expected not to be collected), and $2,000 was over 60 days past due (8 percent expected not to be collected).
At December 31, Allowance for Uncollectible Accounts had a credit balance prior to adjustment of $200.
Prepare Caplan's end-of-period adjustment for estimated uncollectible accounts. Also prepare the entry that would have been made had the credit balance instead been a debit balance.

December 31, Acc. Rec... Age of Acc. Rec... Exp.%uncollec... Ammount
$20,000... not yet due... 1%... $200
$10,000... 1-60 days past due... 4%... $400
$2,000... over 60 days past... 8%... $160

Your expected uncollectible amount is $760, which is what your balance for doubtful accounts should be, then

Dr. Bad debts expense... 560
Cr. Allowance for doubtful accounts... 560
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200+560=760
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if the 200 would had been a debit instead of a credit then
Dr. Bad debts expense... 960
Cr. Allowance for doubtful accounts... 960
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960-200=760
note allowance for doubtful accounts or allowance for uncollectible accounts is the same

[Akhatoon]

Thanks a lot for all your help! :)