Question

On January 31, 2012, the Accounts Receivable balance of Advanced Automotive Technology is $270,000. The Allowance for Uncollectible Accounts has a $4,100 credit balance. Advanced Automotive Technology prepares the following aging schedule for its accounts receivable:


Requirements
1. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging. Show the T-account for the Allowance on January 31, 2012.
2. Assume that instead of a $4,100 credit balance, there is a $900 debit balance in the Allowance account prior to adjustment. Journalize the year-end adjusting entry for uncollectible accounts on the basis of the aging schedule. Calculate the resulting ending balance of the Allowance account based on the account aging.
Show the T-account for the Allowance on January 31,2012.


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  • CreatedApril 29, 2014
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