An aging analysis of Yamoto Limited's accounts receivable at December 31, 2018 and 2017, showed the following:

Additional information:
1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,000.
2. In 2018, $42,000 of accounts were written off as uncollectible and $3,000 of accounts previously written off were recovered.
Instructions
(a) Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2017 and 2018. Note that the estimated percentages uncollectible are the same for both years. Comment on the results.
(b) Record the adjusting entry relating to bad debts on December 31, 2017.
(c) Record the write off of uncollectible accounts in 2018.
(d) Record the collection of accounts previously written off in 2018.
(e) Prepare the adjusting entry relating to bad debts on December 31, 2018.
(f) Calculate the carrying amount of Yamoto's accounts receivable at December 31, 2017 and 2018.

Transcribed Image Text:

Number of Days Outstanding Accounts Receivable Estimated Percentage Uncollectible 2018 2017 o-30 days 31-60 days 61-90 days Over 90 days Total 3% 6% 12% 24% $300,00o $320,000 4,000 114,000 86,000 76,000 130,000 50,00o $580,000 $560,00o