How to solve

$1$

$2$

$3$

$4$

$5$

$6$

$7$

Nash Clothing Corporation grants its customers $30$ days' credit. The company uses the allowance method for its uncollectible accounts receivable. At the fiscal year$-$end of December $31,$ an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.

At the end of $2024,$ accounts receivable were $$451,000$ and the allowance account had a credit balance of $$37,000.$ Accounts receivable activity for $2025$ was as follows:

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

The company's controller prepared the following aging summary of year$-$end accounts receivable:

$\backslash$table$[[18,],[19,$Age$],[20,0-60],[21,61-9],[22,91-1],[23,$Ove$],[24,],[25,],[26,],[27,$Req$],[28,],[29,$col$],[30,],[31,2.],[32,4.],[33,$ba$],[34,5.],[35,$Sh$],[36,6.],[37,7.],[38,8.],[39,],[40,],[41,]]$

Required:

Using the general journal tab $($GJ$)$ record the journal entries during $2025$ for credit sales, accounts receivable collections, and accounts receivable writeoffs. You do not need to provide dates or explanations for your journal entries.

Using the general ledger tab $($GL$)$ post the above journal entries to the related accounts.

In the GL tab calculate the unadjusted balance for each account.

Enter the unadjusted balances into the trial balance $($TB$)$ tab and determine that the unadjusted trial balance balances.

Based on the AR aging above and the estimated percents uncollectible estimate uncollectible AR as of $\frac{12}{31}\frac{?}{2025}.$ Show your calculations above.

Record the year$-$end adjustment to bad debt expense in the GJ tab.

Post the adjustment to the adjustments column of the trial balance.

Calculate $\frac{12}{31}\frac{?}{2025}$ adjusted balances in the trial balance. Verfify that your adjusted trial balance balances. Also verify that your AR balance equals $$642,000$ and your allowance for uncollectible accounts equals your calculation in part $5$ above.

AR

GJ

TB

grading