Ch$.5$ HW

Aging Method

On January $1,$ Hungryman Inc. has the following balances for accounts receivable and allowance for doubtful accounts:

Accounts Receivable

$$226,000$

Allowance for Doubtful

Accounts $($a credit balance$),42,940$

During the year, Hungryman had $$1,080,000$ of credit sales, collected $$550,800$ of accounts receivable, and wrote off $$39,500$ of accounts receivable as uncollectible. At year end, Hungryman performs an aging of its accounts receivable balance and estimates that $$52,400$ will be uncollectible.

Required:

Calculate Hungryman's preadjustment balance in accounts receivable on December $31.$ $

Calculate Hungryman's preadjustment balance in allowance for doubtful accounts on December $31.$

$

Prepare the necessary adjusting entry for the year. If an amount box does not require an entry, leave it blank.