Question

1. Dr. J’s Winning Basketball Inc. is a professional firm whose purpose is to advise college basketball coaches on how to win games. Dr. J, a Hoosier by birth, is considered by most a Master of his profession. Before any year-end adjustments, the balance in Dr. J’s Accounts Receivable was $88,800 and the Allowance for Doubtful Accounts had a credit balance of $4,918.

Client	Accts Rec.	Current	1-30 days	31-60 days	61-90 days
Pitino	$1,300	$1,300
Beilein	$2,800	$2,800
Izzo	$2,500		$2,500
Matta	$10,000		$5,000	$5,000
Calapari	$12,000				$12,000
All others	$60,200	$57,200		$1,000	$2,000
TOTALS	$88,800
% uncollectible		1%	10%	20%	50%

1. (5 points) Complete the Aging Table, compute the new Allowance for Doubtful Accounts balance, and prepare the necessary journal entry.

2. (2 points) We were informed that a former coach from Wisconsin was fired and he has refused to pay the firm. Our attorney has advised us that this receivable ($2,000) is worthless and should be written off. Please prepare the required entry.

Answer 1