Function: SUM; Formula: Subtract, Multiply; Cell Referencing
Some cells are merged.
Using Excel to Create an Aging Schedule and Record Credit Losses
PROBLEM
Mendez Imports prepared the following aging schedule at December 31.
		Number of Days Outstanding	Accounts Receivable	Estimated Percentage Uncollectible
		0-30 days	$ 368,000	1%
		31-60 days	120,000	4%
		61-90 days	72,000	10%
		Over 90 days	40,000	20%
			$ 600,000

Student Work Area
Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area and this work area as indicated.
a.	Complete the Total Estimated Uncollectible Accounts column on the aging schedule.
				Total Estimated Uncollectible Accounts
		Number of Days Outstanding
		0-30 days	$ 3,680
		31-60 days	4,800
		61-90 days	7,200
		Over 90 days	8,000
				$ 23,680
b.	Prepare the adjusting journal entry at December 31 to record credit losses, assuming that the allowance account has the following balance before adjustment.
	Credit balance before adjustment	$3,600

c.	Prepare the adjusting journal entry at December 31 to record credit losses, assuming that the allowance account has the following balance before adjustment.
	Debit balance before adjustment	$5,400