An aging analysis of Roger Limited’s accounts receivable at December 31, 2018 an

Question

An aging analysis of Roger Limited’s accounts receivable at December 31, 2018 and 2017, showed the following:

Prepare an aging schedule to calculate the estimated uncollectible accounts at December 31, 2017 and 2018. Note that the estimated percentages uncollectible are the same for both years.

Total estimated allowance balance at Dec. 31, 2017:

Record the adjusting entry relating to bad debts on December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Record the write off of uncollectible accounts in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Record the collection of accounts previously written off in 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the adjusting entry relating to bad debts on December 31, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Calculate the carrying amount of Roger’s accounts receivable at December 31, 2017 and 2018.

Additional information:
1. At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $9,000. 2. In 2018, $42,400 of accounts were written off as uncollectible and $3,200 of accounts previously written off were recovered. Accounts Receivable Estimated Percentage Uncollectible Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total 2018 $302,800 64,000 86,700 129,000 $582,500 2017 $323,000 114,200 76,700 50,200 $564,100 3% 6% 12% 24%

Explanation / Answer

Dec 31,2017 Estimated Account percentage Number of Days outstanding Receivable uncollectible amount 0---30 days 323,000 3% 9690 31--60 days 114,200 6% 6852 61--90 days 76,700 12% 9204 over 90 days 50,200 24% 12048 total 564,100 37794 Dec 31,2018 Estimated Account percentage Number of Days outstanding Receivable uncollectible amount 0---30 days 302,800 3% 9084 31--60 days 64,000 6% 3840 61--90 days 86,700 12% 10404 over 90 days 129,000 24% 30960 total 582,500 54288 Adjusting entry dec 31,2017 Account titles & Explanations Debit Credit Bad debts expense 28794 Allowance for uncollectible accounts 28,794 (37,794- 9000) Record write off in 2018 Account titles & Explanations Debit Credit Allowance for uncollectible accounts 42,400 Account receivable 42,400 collection of account previously written off Account titles & Explanations Debit Credit Account receivable 3,200 Allowance for uncollectible accounts 3,200 Cash 3,200 Account receivable 3,200 Adjusting entry relating to bad debts on dec 31,2018 Account titles & Explanations Debit Credit Bad debts expense 55694 Allowance for uncollectible accounts 55,694 (54,288 +1,406) 2018 2017 Carrying amount 528,212 526,306

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