Aging Accounts Receivable:

Question

Madariaga Campany's accounts receivable reveal the following balances:

current 840,000
1-30 days past due 405,000
31-60 days past due 95,000
61-90 days past due 60,000
91-120 days past due 11,000

The credit balance in Allowance for Bad debts is now 38,000. After a thorough analysis of its collection history, the company estimates that the following percentages of receivables will eventually prove uncollectible:

current 0.5%
1-30 days past due 3.5%
31-60 days past due 15.0%
61-90 days past due 55.0%
91-120 days past due 94.0%

PREPARE AN AGING SCHEDULE FOR THE ACCOUNTS RECEIVABLE, AND GIVE THE JOURNAL ENTRY FOR RECORDING THE NECESSARY CHANGE IN THE ALLOWANCE FOR BAD DEBTS ACCOUNT.