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 as follows:
Age Class Balance Percent Uncollectible
Not past due $892,000 3/4 %
1–30 days past due 285,000 1
31-60 days past due 101,000 8
61–90 days past due 63,000 16
91–180 days past due 43,100 50
Over 180 days past due 17,700 80
Total $1,401,800
Required:
1. Assume that the allowance for doubtful accounts for Outiaw Bike Co. had a debit balance of $5,140 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31 Dec. 31