# Question: On January 31 2012 the Accounts Receivable balance of Advanced

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:
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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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