Exercise $8-13$ Aging analysis LO$3$

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December $31,2023,$ of $$2,200.$

Required:

a$.$ Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows.

December $31,2023$ Accounts Receivable Age of Accounts Receivable Expected Percentage

Uncollectible

$ $148,000$ Not due $($under $30$ days$)1\%$

$43,0001$ to $30$ days past due $4\%$

$10,00031$ to $60$ days past due $10\%$

$2,400$ Over $60$ days past due $60\%$

b$.$ During $2024,$ credit sales were $$1,406,000$; sales discounts taken were $$26,000$; accounts receivable collected were $$1,175,400$; and accounts written off during the year totalled $$28,000.$ Prepare the adjusting entry required on December $31,2024,$ to estimate uncollectible receivables assuming it is based on the following aging analysis.

December $31,2024$ Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible

$ $280,000$ Not due $($under $30$ days$)1\%$

$87,0001$ to $30$ days past due $4\%$

$24,00031$ to $60$ days past due $10\%$

$15,000$ Over $60$ days past due $60\%$

c$.$ Show how accounts receivable would appear on the December $31,2024,$ balance sheet.