Presented below is an aging schedule for Kimler Company on December 31, 2017. Kimler sells all of its goods on account with terms n/30.

At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,000.
Instructions
(a) Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2017.
(b) Prepare the adjusting journal entry to record bad debt expense.
(c) Show how accounts receivable would be presented on the balance sheet on December 31, 2017.
Taking It Further
If Kimler's credit manager increases the amount of credit checking the company does before granting credit on all of its customers, will that eliminate the bad debts? Explain.

Number of s Past Due Customer Akers Barrett Corner Delong Other Total Not yet Due-3 31-60 61-90 Over 90 S 20,000 S 9,000 $11,000 30,000 30,000 50,000 38,000 126,000 15,000 5,000 $30,000 S38,000 6,000 $29,000 $24,000 30,000 S44,000 13,000 92,000 $137,000 15,000 S264,000 Estimated percentage uncollectible Total estimated bad debts 2% 5% 10% 24% 50%