Spring Garden Flowers had the following balances at December 31, 2011, before the year-end adjustments:
accounts receivable allowance for uncollectible accounts
77,000 1, 700
The aging of accounts receivable yields the following data: Requirements
Age of accounts receivable
0-60 Days Over 60 Days Total Receivables
accounts receivable $71, 000 $6, 000 $77,000
percent uncollectible x1% x 20 %
1. Journalize Spring's entry to adjust the allowance account to its correct balance at December 31, 2011.
2. Prepare a T-account to compute the ending balance of Allowance for uncollectible accounts.