Castro Shoes Company is in the power boat manufacturing business. As of 2015 September 1, the balance in its Accounts Receivable by Age account is $156,000. A schedule of accounts receivable by age is as follows:

Account	Balance	Current	Past Due In Days
			1-30	31-60	Over 60
Elson, Adam,	21,000	850	350		670
Griffin, Erica	25,690	570	700	550
Castro, Rod	300	155		70
All other accounts	109,010	25,000	4,500	3,755	1,567
Totals	156,000	26,575	5,550	4,375	2,226

Use the Following Uncollectible Accounts rates:

Current                             1.5%

1-30 days past due           2%

31-60 days past due        10%

Over 60 days past due     21%

Requirements:

Compute the estimated uncollectible accounts at the end of the fiscal year using above rates.

The credit balance was = $230 in Allowance for Doubtful Accounts (December 31, 2015), please calculate the amount of the adjustment for uncollectable accounts expense. This adjustment should included as a part of the adjusting entries. Record this entry.

Elson Adam (account receivable) did not make a payment on time and the amount of $670 was classified as uncollectible and written off on June 15, 2015, please record this journal entry.

Please, estimate the uncollectible accounts using percentages of the total accounts receivable on December 31, 2015. The rate = 3% of the total total accounts receivable. Record this entry.

1)

Castro Shoes Company

Estimation of Uncollectible Accounts

Over 60 days past due
31-60 days past due
1-30 days past due
Current
Total Estimation of Uncollectible Accounts

2)   Adjustment for Estimated Uncollectible Accounts

Estm. Of Uncollectible Accounts …………………………………………

Less Credit balance ……………………………………………………….

Estimated Uncollectible Accounts After Adjustment…………………….

Castro Shoes Company

General Journal

Date

Description

Debit

Credit

Requirements:

Compute the estimated uncollectible accounts at the end of the fiscal year using above rates.

The credit balance was = $230 in Allowance for Doubtful Accounts (December 31, 2015), please calculate the amount of the adjustment for uncollectable accounts expense. This adjustment should included as a part of the adjusting entries. Record this entry.

Elson Adam (account receivable) did not make a payment on time and the amount of $670 was classified as uncollectible and written off on June 15, 2015, please record this journal entry.

Please, estimate the uncollectible accounts using percentages of the total accounts receivable on December 31, 2015. The rate = 3% of the total total accounts receivable. Record this entry.

Answer rating: 100% (QA)

1 st one Estimated uncollectible accounts 26575 15 5550 2 4375 10 2226 21 398625 111 4... View the full answer