Module $2$ Exam $($Problems$)$ i

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$2$

Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: $(1)1-30$ days old, $(2)31-90$ days old, and $(3)$ more than $90$ days old: Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: $(1)1\%,(2)15\%,$ and $(3)36\%,$ respectively.

At December $31,2019,$ the unadjusted credit balance in the Allowance for Doubtful Accounts was $$230.$ The total Accounts Receivable in each age category were: $(1)1-30$ days old, $$59,000,(2)31-90$ days old, $$11,000,$ and $(3)$ more than $90$ days old, $$4,000.$

Required:

a$.$ Calculate the estimate of uncollectible accounts at December $31,2019.$

b$.$ Prepare the appropriate adjusting entry dated December $31,2019.$

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Calculate the estimate of uncollectible accounts at December $31,2019.$

Estimated uncollectible accounts