At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Stenner's Electronics, Inc., is $330,000. The Allowance for Uncollectible Accounts has a(n) $17,700 credit balance. Stenner's Electronics prepares the following aging schedule for Accounts Receivable EEB (Click the icon to view the aging schedule.) Read the requirements Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? First, calculate a revised allowance for uncollectible accounts amount and the adjusting entry amount. (Round to the nearest dollar.) Allowance for Uncollectible Accounts: Credit balance needed Data Table 1-30 31-60 61-90 Over 90 Age of Accounts Total Balance $330,000 Estimated uncollectible 1-30 Days 31-60 Days 61-90 Days Over 90 Days Subtotal Less: Unadjusted balance Adjusting entry amount $130,000 $100,000 3.0 % $70,000 5.0 % $30,000 50.0 % 0.5 % Print Done

Question

Answer all questions. Ch. 5-2

At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Stenner's Electronics, Inc., is $330,000. The Allowance for Uncollectible Accounts has a(n) $17,700 credit balance. Stenner's Electronics prepares the following aging schedule for Accounts Receivable
EEB (Click the icon to view the aging schedule.)
Read the requirements
Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low?
First, calculate a revised allowance for uncollectible accounts amount and the adjusting entry amount. (Round to the nearest dollar.)
Allowance for Uncollectible Accounts:
Credit balance needed
Data Table
1-30
31-60
61-90
Over 90
Age of Accounts
Total Balance
$330,000
Estimated uncollectible
1-30 Days
31-60 Days
61-90 Days
Over 90 Days
Subtotal
Less: Unadjusted balance
Adjusting entry amount
$130,000
$100,000
3.0 %
$70,000
5.0 %
$30,000
50.0 %
0.5 %
Print Done
Expand
Transcribed Image Text

At December 31, 2018, before any year-end adjustments, the Accounts Receivable balance of Stenner's Electronics, Inc., is $330,000. The Allowance for Uncollectible Accounts has a(n) $17,700 credit balance. Stenner's Electronics prepares the following aging schedule for Accounts Receivable EEB (Click the icon to view the aging schedule.) Read the requirements Requirement 1. Based on the aging of Accounts Receivable, is the unadjusted balance of the allowance account adequate? Too high? Too low? First, calculate a revised allowance for uncollectible accounts amount and the adjusting entry amount. (Round to the nearest dollar.) Allowance for Uncollectible Accounts: Credit balance needed Data Table 1-30 31-60 61-90 Over 90 Age of Accounts Total Balance $330,000 Estimated uncollectible 1-30 Days 31-60 Days 61-90 Days Over 90 Days Subtotal Less: Unadjusted balance Adjusting entry amount $130,000 $100,000 3.0 % $70,000 5.0 % $30,000 50.0 % 0.5 % Print Done

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