Short$-$Term Operating Assets: Cash and Receivables

Bad Debt Expense, Aging of Accounts Receivable, Journal Entry.

Giaraldi Garden Products, Inc. developed an aged schedule of accounts receivable at the end of each year.

Giaraldi Garden Products: Aged Schedule of Accounts Receivable

Past Due

Customer Current $130$ Days $3160$ Days $6190$ Days Over $90$ Days Totals

Carey Company $$10,000$ $$34,500$ $$44,500$

Gibson, Ltd$.$ $$423,000$ $$27,000450,000$

KW Quarterly $33,000$ $$67,0001,500101,500$

Onix Construction $100,00045,00090,500235,500$

Carpenter Lumber $387,000125,000500512,500$

Totals $$810,000$ $$185,000$ $$167,000$ $$55,000$ $$127,000$ $$1,344,000$

The company estimated an allowance for uncollectible accounts based on the following estimates:

Aging Category Allowance Provided

Current $3\%$

$130$ days past due $6\%$

$3160$ days past due $18\%$

$6190$ days past due $45\%$

Over $90$ days past due $100\%$

Giaraldi reported for the current year:

Net credit sales $$18,500,000$

The company$$s ending balances of accounts receivable and the allowance for uncollectible accounts are presented below:

Accounts Receivable

Ending Balance $1,344,000$

Allowance for Uncollectible Accounts

$130,000$ Unadjusted Ending Balance

Use the blue shaded areas on the ENTERANSWERS tab for inputs.

Always use cell references and formulas where appropriate to receive full credit. If you copy$/$paste from the Instructions tab you will be marked wrong.