Reference no: EM132650994

Jesse Ltd had a $300 credit balance in allowance for a doubtful accounts 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%
Overy 90 days past due                  9,000 30%
Total accounts recievable             211,000 30%

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 Allowance for doubtful accounts 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.