Help Save & Exit Submit Check my work Problem 7-3A Aging accounts receivable and accounting for bad debts LO P2, P3 (The following information applies to the questions displayed below.) On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000. Jarden prepares a schedule of its December 31 accounts receivable by age. Accounts Receivable $ 900,000 360,000 72,000 36,000 14,400 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.30% 2.05 6.55 33.00 69.00 Problem 7-3A Part 1 Required: 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31. Accounts Receivable Percent Uncollectible (#.#8%) Estimated Uncollectible Not due: 1 to 30: 31 to 60: 61 to 90: Over 90 Estimated balance of allowance for uncollectibles 2. Prepare the adjusting entry to record bad debts expense at December 31. (Round percentage answers to nearest whole percent. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the estimated bad debts. Note: Enter debits before credits Date General Journal Debit Credit Dec 31 Record entry Clear entry View general Journal Problem 7-3A Part 3 3. On June 30 of the next year, Jarden concludes that a customer's $5,100 receivable is uncollectible and the account is written off. Does this write off directly affect Jarden's net income? Aflects Jarden's net income