Ayearminusend review of accounts receivable and estimated uncollectible percentages revealed the following:
days outstanding accounts receivable est. percent uncollectible
1 -30days $ 60, 000 3%
31-60 days $ 40,000 5%
61-90 days $ 25, 000 12%
over 90 days $ 7, 000 50%
before the yearminusend adjustment, the credit balance in allowance for uncollectible accounts was $ 1, 000. under the method, the expense at yearminusend is

The Uncollectible Account Expense at year end is $9,300

Explanation:

At the end of the year:

Estimated Uncollectible = $60,000 x 3% + $40,000 x 5% + $25,000 x 12% + $7,000 x 50% = $10,300

The company uses aging of receivables method. Before adjustment, the credit balance in Allowance for Uncollectible Accounts was $ 1,000. Therefore: Uncollectible Account Expense = $10,300 - $1,000 = $9,300

The entry:

Debit Uncollectible Account Expense $9,300

Credit Allowance for Uncollectible Accounts $9,300

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explanation: