Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account...

  

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Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $579,000. Of this amount, $69,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due 0 to 90 days past due 91 to 180 days past due More than 180 days. past due Total Amount Receivable $29,000 14,900 9,900 15,200 $69,000 Estimated Percent Uncollectible 48 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $3,900 (credit). 3. On July 19, 2025, a customer's account balance of $6,900 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the amount. Record the cash collection. Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2024, Pearl provides services on account of $579,000. Of this amount, $69,000 remains receivable at the end of the year. An aging schedule as of December 31, 2024, is provided below. Age Group Not yet due 0 to 90 days past due 91 to 180 days past due More than 180 days. past due Total Amount Receivable $29,000 14,900 9,900 15,200 $69,000 Estimated Percent Uncollectible 48 15% 20% 85% Required: 1. Calculate the allowance for uncollectible accounts. 2. Record the December 31, 2024, adjusting entry, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $3,900 (credit). 3. On July 19, 2025, a customer's account balance of $6,900 is written off as uncollectible. Record the write-off. 4. On September 30, 2025, the customer whose account was written off in requirement 3 unexpectedly pays the amount. Record the cash collection.

Answer rating: 100% (QA)

1 Calculation of the allowance for uncollectible accounts Not y... View the full answer