Reference no: EM132677880

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible accounts.

Accounts not yet due = $400,000; estimated uncollectible = 8%.
Accounts 1-30 days past due = $50,000; estimated uncollectible = 15%.
Accounts 31-90 days past due = $40,000; estimated uncollectible = 30%
Accounts more than 90 days past due = $30,000; estimated uncollectible = 50%.At 12/31/2021, before recording any adjustments, Zuo has a credit balance of $22,000 in its allowance for uncollectible accounts.

Required:

Problem 1. Estimate the appropriate 12/31/2021 balance for Zuo's allowance for uncollectible accounts.

Problem 2. What journal entry should Zuo record to adjust its allowance for uncollectible accounts?

Problem 3. Calculate Zuo's 12/31/2021 net accounts receivable balance.