A partially completed aging of receivables schedule for Lindy Designs' is shown below. Calculate the amount that is estimated to be uncollectible.
| Age Interval: |
Balance: |
Percentage: |
Amount: |
| Not past due |
550,000 |
2.50% |
| 1~30 days past due: |
96,500 |
4.00% |
| 31~60 days past due: |
43,750 |
9.50% |
| 61~90 days past due: |
22,250 |
16.00% |
| 91~180 days past due: |
5,600 |
31.00% |
| 181~365 days past due: |
3,100 |
60.00% |
| Over 365 days past due: |
1,250 |
95.00% |
| Total: |
722,450 |
Required:
| (a) |
Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. |
| (b) |
If the Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for the bad debt expense for the year. |
| (c) |
If the Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for the bad debt expense for the year. |