Problem 8-4A

Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.

Calculate the total estimated bad debts based on the below information

				Number of Days Outstanding
		Total		030		3160		6190		91120		Over 120
Accounts receivable		286,200		94,800		60,800		55,400		41,400		$33,800
% uncollectible				2%		5%		6%		9%		21%
Estimated Bad debts		$		$		$		$		$		$

(b)		Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $8,500 debit.
(c)		Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.
(d)		The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection

No	Account Titles and Explanation	Debit	Credit
(b)
(c)
(d)
	(To reverse write-off)
	(To record collection of write off)