Aging Method

Aging Method On January 1, Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts: Accounts Receivable $249,000 Allowance for Doubtful Accounts (a credit balance) 29,880 During the year, Hungryman had $1,080,000 of credit sales, collected $496,800 of accounts receivable, and wrote off $27,500 of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $36,500 will be uncollectible. Required: 1. Calculate Hungryman's preadjustment balance in accounts receivable on December 31. $ 2. Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December 31. $ 3. Prepare the necessary adjusting entry for the year. If an amount box does not require an entry, leave it blank. Bad Debt Expense 88 Allowance for Doubtful Accounts