Use the preceding analysis to compute the estimated amount of uncollectible receivable Prepare the journal entry to record the estimated receivable assuming the balance in the Allowance for Doubtful accounts prior to adjustment is:
STUVWXYZ Department store located in a metropolitan area, has been experiencing difficulty in estimating its
Estimated Percentage
Balance Age of receivable Uncollectible
193,000 under 30 days 0.8%
114,000 30-60 days 2.0%
73,000 61-120 days 5.0%
41,000 121-240 days 20.0%
25,000 241-360 days 35.0%
19,000 over 360 days 60.0%
465,000
Required:
- Use the preceding analysis to compute the estimated amount of uncollectible receivable
- Prepare the
journal entry to record the estimated receivable assuming the balance in the Allowance for Doubtful accounts prior to adjustment is:
- 0
- P3,000 (debit)
- P2,800 (credit)
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