Sullivan co.s accounts receivable show the following, Ask an Expert

Accounting

Sullivan Co.'s accounts receivable show the following balances by age:

Age of Receivable Balance
0-30 days $600,000
31-60 days 175,000
61-120 days 70,000
more than 120 days 10,000

The credit balance in the allowance for uncollectible accounts is $2,500. Sullivan Co. uses the following percentages to compute the estimated amounts of receivables that will eventually prove uncollectible: 0-30 days, 0.7%; 31-60 days, 1.2%; 61-120 days, 11%; and more than 120 days, 65%.

Required:

Prepare the adjusting journal entry.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9277608

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