ACCOUNTS RECEIVABLES (08 POINTS)

Norma J. Baker Corp. uses the balance sheet approach to estimate uncollectible accounts expenses. At year-end, an aging of her accounts receivable produced the following five groupings:

On the basis of past experience, the company estimated the percentages probably uncollectible for the 5 age groups as follows:

Group A,1%;

Group B,3%;

Group C,10%;

Group D,20%;

Group E,50%.

The Allowance for Doubtful Accounts before adjustment at December 31 showed a Credit Balance also $21,500.

a) Not yet due	$250,000
b) 1-30 days past due	$105,000
c) 31-60 days past due	$40,000
d) 61-90 days past due	$7,500
e) Over 90 days past due	$15,000
Total	$417,500

INSTRUCTION:

Fill in the Accounts Receivable by Age Group Table and enter the Adjusting Transaction into the Ledger below:

Accounts Receivable by Age Group
	Amount	% considered Uncollectible	Estimated Uncollectible Accounts
a. Not yet due
b. 1-30 days past due
c. 31-60 days past due
d. 61-90 days past due
e. Over 90 days past due
Totals

Account Title	Debit	Credit