Presented below is information related to the AccountsReceivable accounts of Concord Inc. during the current year2017.
1. An aging schedule of the accounts receivable asof December 31, 2017, is as follows.
Age
| |
Net Debit Balance
| | % to Be Applied after
Correction Is Made |
| Under 60 days | | $170,300 | | | 1% |
| 60–90 days | | 136,400 | | | 3% |
| 91–120 days | | 38,500 | * | | 5% |
| Over 120 days | | 23,000 | | | $3,700 definitelyuncollectible;
estimated remainder uncollectible is 24% |
| | $368,200 | | | |
*The $3,200 write-off of receivables is related to the 91-to-120day category
2. The Accounts Receivable control account has adebit balance of $368,200 on December 31, 2017.
3. Two entries were made in the Bad Debt Expenseaccount during the year: (1) a debit on December 31 for the amountcredited to Allowance for Doubtful Accounts, and (2) a credit for$3,200 on November 3, 2017, and a debit to Allowance for DoubtfulAccounts because of a bankruptcy.
4. Allowance for Doubtful Accounts is as followsfor 2017.
Allowance for Doubtful Accounts |
| Nov. 3 | | Uncollectible accounts written off | | 3,200 | Jan. 1 | | Beginning balance | | 9,300 |
| | | | | Dec. 31 | | 5% of $368,200 | | 18,410 |
5. A credit balance exists in the AccountsReceivable (60–90 days) of $4,700, which represents an advance on asales contract.
Assuming that the books have not been closed for 2017, make thenecessary correcting entries.
