Reference no: EM132947905

Question - Sunshine Office has the following aging schedule on for their $345 250 accounts receivable:

Total Not Yet Due = $183 590

1-30 days past due = $94 680

31-60 days past due = $43 340

61-90 days past due = $9 000

Over 90 days past due = $14 640.

All accounts are due in 30 days and after this are considered past due. Two accounts receivable were accidentally omitted from this schedule. The following data is available regarding these accounts:

1. R. Jones owes $4 250 from two invoices: invoice # 218 dated March 14 in the amount of $2 980; and invoice # 568 dated May 9 in the amount of $1 270.

2. F. Smith owes $3 760 from two invoices: invoice # 574 dated May 19, in the amount of $1 350: and invoice # 641 dated June 5 in the amount of $2 410.

a) Complete the aging chart as of June 30 by adding to the column subtotals an aging of the accounts of Jones and Smith.

b) Calculate the estimated portion of each age group that will prove uncollectable and the required balance in the Allowance for Doubtful Accounts. The following percentages of each age group are estimated to be uncollectable: 1% for amount not yet due; 4% for 1-30 days past due; 10% for 31-60 days past due; 30% for 61-90 days past due; 50% for over 90 days past due.

c) Prepare the journal entry to adjust the Allowance for Doubtful Accounts account at June 30, 2015. Prior to making this adjustment, the account has a credit balance of $13 800.