Reference no: EM133107900

Question - Calculate uncollectible accounts using the aging method; record adjustment - Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts.

1. Accounts not yet due = $216,000; estimated uncollectible = 20%.

2. Accounts 1-45 days past due = $30,000; estimated uncollectible = 25%.

3. Accounts more than 45 days past due = $12,000; estimated uncollectible = 30%.

Before recording any adjustments, Dhaliwal has a debit balance of $54,100 in its allowance for uncollectible accounts.

Required -

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

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