Assume that the allowance for doubtful accounts for Renegade Co. had a debit balance of $3,500 as of December 31, 2008. Journalize the adjusting entry for uncollectible accounts as of December 31, 2008.

 

 

Percent

Age Interval

Balance

Uncollectible

Not past due

$400,000

1%

1–30 days past due

80,000

2

31–60 days past due

18,000

5

61–90 days past due

12,500

10

91–180 days past due

6,000

70

Over 180 days past due

2,500

90

 

$519,000