Answer:
1. Appropriate balance for Zuo’s allowance for uncollectible accounts at 12/31/2021 is $39,163
Account titles Debit ($) Credit ($)
Bad debt expense $15,763
Allowance for uncollectible amount $15,763
3. Net Account Receivables = $545,937
Explanation:
Accounts not yet due = $450,000; estimated uncollectible = 5%.
Accounts 1–30 days past due = $56,300; estimated uncollectible = 9%.
Accounts 31–90 days past due = $45,000; estimated uncollectible = 13%
Accounts more than 90 days past due = $33,800; estimated uncollectible = 17%
1. Calculation of estimated collectible amount
Dollar value Percent Uncollectible Amount Uncollectible
$450,000 5% $ 22,500
$56,300 9% $ 5,067
$45,000 13% $ 5,850
$33,800 17% $ 5,746
Appropriate balance for Zuo’s allowance for uncollectible accounts at 12/31/2021 = $22,500 + $5,067 + $5,850 + $5,746 = $39,163
2. Account titles Debit ($) Credit ($)
Bad debt expense $15,763
Allowance for uncollectible amount $15,763
Adjusting entry = $39,163 - $23,400 = $15,763
3). Net account receivable balance on 12/31/2021:
Accounts receivables total = $585,100
Less: Allowance for uncollectible account = $39,163
Net Account Receivables = $545,937
