The following information relates to Johnstone Supplies, Inc.

The following information relates to Johnstone Supplies, Inc.
 

Johnstone Supplies,Inc.
Accounts Receivable Aging Report, July 31, 2011
Accounts receivable by due date	Accounts Total	Estimated % uncollectible
Not yet due	$128,200	3%
1-30 days past due	$90,900	13%
31-60 days past due	$55,300	19%
Over 60 days past due	$33,500	37%

  

The unadjusted balance of the allowance for doubtful accounts of Johnstone Supplies, Inc., is a credit balance in the amount of $29,457 on July 31, 2011. Based on the accounts receivable aging report, bad debt expense will be:

 
rev: 03-02-2011

	$54,477.
	$68,022.
	$38,565.
	$9,108.

Using the aging method, bad debt expense equals the estimated amount of uncollectible accounts based on the aging report minus the credit balance in the allowance for doubtful accounts.

If Johnstone Supplies, Inc., writes off $3,251 of uncollectible accounts during August, 2011, the unadjusted account balance in the allowance for doubtful accounts on August 31, 2011 will be:

 
rev: 03-02-2011

	$35,314.
	$9,108.
	$38,565.
	$5,857.

The July 31 adjusted balance in the allowance account minus the write-off in August equals the unadjusted balance at the end of August.