Entry for uncollectible accounts
Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are given below.
Age Interval Balance Estimated
Uncollectible Accounts
Percent Estimated
Uncollectible Accounts
Amount
Not past due $902,000 3/4% $6,765
1-30 days past due 292,000 1.00 2,920
31-60 days past due 98,500 8.00 7,880
61-90 days past due 68,000 16.00 10,880
91-180 days past due 44,700 50.00 22,350
Over 180 days past due 15,500 80.00 12,400
Total $1,420,700 $63,195
Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,225 as of December 31.
Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank.
DateAccountDebitCredit
Dec. 31
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