A Partially Completed Aging of Receivables Schedule for Lindy Designs

question 188

Essay

A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible.?
(a) Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar.? $\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { \text { Estimated Uncollectible } } \\\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad { \text { Accounts } }$
$\begin{array}{|l|r|c|c|}\hline \text { Age Interval } & \text { Balance } & \text { Percentage } & \text { Amount } \\\hline \text { Not past due } & 5550,000 & 2.50 \% & \\\hline 1-30 \text { days past due } & 96,500 & 4.00 & \\\hline 31-60 \text { days past due } & 43,750 & 9.50 & \\\hline 61-90 \text { days past due } & 22,250 & 16.00 & \\\hline 91-180 \text { days past due } & 5,600 & 31.00 & \\\hline 181-365 \text { days past due } & 3,100 & 60.00 & \\\hline \text { Over } 365 \text { days past due } & 1,250 & 95.00 & \\\hline \text { Total } & \underline{\mathbf{\$ 7 2 2 , 4 5 0}} & & \\\hline\end{array}$ (b) If Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for bad debt expense for the year.
(c) If Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for bad debt expense for the year.

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Definitions:

Measures

Quantitative tools or methods used to assess or quantify variables or phenomena in research and evaluation contexts.

I Data

Information derived from an individual's experiences, behaviors, and characteristics, often used in psychological studies.

Knowledgeable Observers

Individuals with extensive understanding or insight in a particular domain, often called upon to provide evaluations or assessments based on their expertise.

Fish-and-Water Effect

A phenomenon where individuals are unaware of the prevalent cultural or environmental conditions that influence their behavior, similar to how fish may not recognize they are in water.