Hi could you do all three parts if possible :) Required information [The followi

Question

Hi could you do all three parts if possible :)

Required information [The following information applies to the questions displayed below.] Jarden Company has credit sales of $3,000,000 for year 2017. On December 31, 2017, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $23,296. Jarden prepares a schedule of its December 31, 2017, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here December 31, 2017 Accounts Receivable Age of Accounts Receivable Expected Percent Uncollectible $ 600,000 1.30% 2.05 6.55 33.00 69.00 Not yet due 240,000 48,000 24,000 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due 4,800 Required 1. Estimate the required balance of the Allowance for Doubtful Accounts at December 31, 2017, using the aging of accounts receivable method Accounts Receivable Percent Uncollectible (###%) Estimated Uncollectible Not due 1 to 30 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectibles

Explanation / Answer

SOLUTION

(1)

Estimated balance of allowance for uncollectibles = $27,096 Credit

(B) Journal Entry-

Unadjusted balance = $23,296 credit

Estimated balance = $27,096 credit

Required adjustment = $3,800

Accounts Receivable ($) (A) Percent uncollectible (B) Estimated uncollectible (A*B) Not due 600,000 1.30% 7,800 1 to 30 240,000 2.05% 4,920 31 to 60 48,000 6.55% 3,144 61 to 90 24,000 33.00% 7,920 Over 90 4,800 69.00% 3,312 27,096

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