Answer:
a. 5% of $ 650,000= $ 32,500
b. Required Adjustment = $ 19,100
c. Required Adjustment = $ 34,900
Explanation:
Days Past Due
Total 0 1 to 30 31 to 60 61 to 90 Over 90
Accounts- $650,000 $412,000 $106,000 $52,000 $34,000 $46,000
receivable
Percent- 2% 3% 6% 8% 11%
uncollectible 22,320 8,240 3180 3120 2720 5060
a. 5% of $ 650,000= $ 32,500
B . Unadjusted Balance = $ 13,400 Credit
Estimated Balance= $ 32,500
Required Adjustment = $ 19,100
C. Unadjusted Balance = $ 2,400 Debit
Estimated Balance= $ 32,500
Required Adjustment = $ 34,900
