An aging analysis of Hagiwara Company’s accounts receivable at December 31, 2023 and 2024, showed the following:

Additional information:
1. At December 31, 2023, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $6,600.
2. In 2024, $23,500 of accounts was written off as uncollectible and $2,200 of accounts previously written off was collected.

Instructions
a. Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2023, and at December 31, 2024.
b. Calculate the carrying amount of Hagiwara’s accounts receivable at December 31, 2023, and December 31, 2024.
c. Record the following: 

1. The adjusting entry on December 31, 2023

2. The write-off of uncollectible accounts in 2024 

3. The collection in 2024 of accounts previously written off 

4. The adjusting entry on December 31, 2024

Taking It Further

What are the implications of the changes in the age of the receivables from 2023 to 2024?

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Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Estimated % Uncollectible 3% 6% 12% 25% December 31 2024 $115,000 35,000 45,000 80,000 $275,000 2023 $145,000 63,000 38,000 24,000 $270,000