Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of
Question:
Pearl E. White Orthodontist specializes in correcting misaligned teeth. During 2021, Pearl provides services on account of $590,000. Of this amount, $80,000 remains receivable at the end of the year. An aging schedule as of December 31, 2021, is provided below.
Required:1. Calculate the allowance for uncollectible accounts.2. Record the December 31, 2021, adjustment, assuming the balance of Allowance for Uncollectible Accounts before adjustment is $5,000 (credit).3. On July 19, 2022, a customer?s account balance of $8,000 is written off as uncollectible. Record the write-off.4. On September 30, 2022, the customer whose account was written off in requirement 3 unexpectedly pays the full amount. Record the cash collection.
Aging ScheduleAging schedule is an accounting table that shows a company’s account receivables. It is an summarized presentation of accounts receivable into a separate time brackets that the rank received based upon the days due or the days past due. Generally...
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Financial Accounting
ISBN: 978-1259914898
5th edition
Authors: David Spiceland, Wayne M. Thomas, Don Herrmann