Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Imperial Bikes Co.

Question:

Using the data in Exercise 9-11, assume that the allowance for doubtful accounts for Imperial Bikes Co. had a debit balance of $1,400 as of December 31, 2012.

Journalize the adjusting entry for uncollectible accounts as of December 31, 2012.

Data From 9-11

Imperial Bikes Co. is a wholesaler of motorcycle supplies. An aging of the company’s accounts receivable on December 31, 2012, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows:

Percent Uncollectible Age Interval Not past due 1-30 days past due 31-60 days past due 61-90 days past due 91-180 days p

Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31, 2012.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...