Reference no: EM13306619

Cutthroat Company supplies flies and fishing gear to sporting goods stores and out¬fitters throughout the western United States. The accounts receivable clerk for Cutthroat prepared the following partially completed aging-of-receivables schedule as of the end of business on December 31, 2009:

Cutthroat Company has a past history of uncollectible accounts by age category, as follows:

Instruction

1. Determine the number of days past due for each of the preceding accounts.

2. Complete the aging-of-receivables schedule.

3. Estimate the allowance for doubtful accounts, based on the aging-of-receivables schedule.

4. Assume that the allowance for doubtful accounts for Cutthroat Company has a debit balance of $1,370 before adjustment on December 31, 2009. Journalize the adjusting entry for uncollectible accounts.