Reference no: EM132650984

Jesse ltd had a $300 credit balance in Allowance for a doubtful account at December 31, 2019, before the current year's provision for uncollectible accounts. An aging of the accounts receivable shows the following:

                                     Estimated                      Percentage Uncollectible
Current Accounts         $170,000                       1%
1-30 days past due     15,000                             3%
31-60 days past due   12,000                              6%
61-90 days past due    5,000                              15%
Over 90 days past due   9,000                             30%
Total Accounts Receivable   $211,000

Required:

Question (a) Prepare the adjusting entry on December 31, 2017, to recognize bad debts expense

Question (b) Assume the same facts as above except that the Allowance for doubtful Accounts account had a $300 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts