In this Applying Excel exercise you will practice using cell referencing, conditional 'if' statements, and formulas to create an Aging Schedule and to adjust the Allowance for Uncollectible Accounts balance (the Accounts Receivable 'contra account'). Watch the tutorial video and then complete Parts 1 and 2 to practice and apply the skills demonstrated in the video.

Revise your worksheet to reflect these updated assumptions then answer the questions that follow. You have been provided with the following Aging Report to use to adjust the Allowance for Uncollectible Accounts for a company at year end.

Age Group	Accounts Receivable	Estimated Percent Uncollectible
Not yet due	$86,000	5%
1 to 30 days past due	38,000	10%
31 to 60 days past due	24,000	20%
61 to 90 days past due	18,000	40%
Over 90 days past due	16,000	80%
	$182,000

Allowance for Uncollectible Accounts	1,900	Credit

After reviewing the data, you note the "not yet due" category is overstated and needs to decrease by 20%. Also, the "Over 90 days" category is understated and needs to increase by 20%. Also, you note the balance in the Allowance account is actually a debit, rather than a credit. Being that the normal balance for this account is a credit, the accountant hadn't noticed the issue. Required: 1. Use your spreadsheet to recalculate the needed adjustment and account balances. What will be the balance in Accounts Receivable and the Allowance for Uncollectible Accounts based on the above information?

Prepare the journal entry to adjust the Allowance for Uncollectible Accounts, using your corrected data. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)