Dhaliwal Digital categorizes its accounts receivable into three age groups for purposes of estimating its allowance for uncollectible accounts. Accounts not yet due = $270,000; estimated uncollectible = 5%. Accounts 1–45 days past due = $37,500; estimated uncollectible = 10%. Accounts more than 45 days past due = $15,000; estimated uncollectible = 15%. Before recording any adjustments, Dhaliwal has a debit balance of $67,500 in its allowance for uncollectible accounts. Required: 1. Estimate the appropriate 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts. 2. What journal entry should Dhaliwal record to adjust its allowance for uncollectible accounts?

1. Age group = A

Amount of Accounts Receivable = B

Estimated % uncollectible = C

Estimated Amount Uncollectible = D

    A                        B                  C                         D(B*C)

Not yet due       $270,000        5%                      $13,500

1-45 days           $37,500           10%                     $3,750

Over 45 days     $15,000           15%                     $2,250

Estimated amount required in Allowance        $19,500

for Doubtful Debts (Credit Balance)

Current Balance in Allowance for                      $67,500

Doubtful Debts (Debit Balance)                                          

Required charge to Bad debts Expense            $87,000

for the year

Thus, the Estimated 12/31/2021 balance for Dhaliwal’s allowance for uncollectible accounts (Credit Balance).

2.                                     Journal Entry

Date       Accounts and Explanation            Debit      Credit  

Dec. 31   Bad debts Expense                      $87,000    

                      Allowance for doubtful accounts         $87,000  

              (To record the estimated bad debts)

the answerr would be 1

the law, public safety, corrections, and security cluster prepares people for careers in planning, managing, and providing legal, public safety, protective services and homeland security, including professional and technical support services.