Question

Daley Company prepared the following aging of receivables analysis at December 31 Days Past Due Total $585,000 $399,000 1 to 30 31 to 60 61 to 90 Over 90 $93,000 $39,000 $21,000 $33,000 Accounts receivable Percent uncollectible & E 2 % 5% 7% 10% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,900 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $400 debit.

Req A Req B and C Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Percent Receivable Uncollectible (%) Not due: 1 to 30: 31 to 60 61 to 90: Over 90: Estimated balance of allowance for uncollectibles Reg B and C >

Reg A Reg B and C Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,900 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $400 debit. Show less View transaction list Journal entry worksheet Record estimated bad debts assuming that allowance for Doubtful Accounts has a $3,900 credit balance.

Answer 1

Solution a:

Н D. G 1 2 4 Accounts Receivable $399,000x $93,000x $39,000 x $21,000x $33,000x Percent Uncollectible (%) 5 1% $3,990 Not due: 6 2% 1 to 30: $1,860 7 5% 31 to 60: $1,950 7% 10% 61 to 90: $1,470 9 Over 90: $3,300 10 $12,570 Estimated balance of allowance for uncollectibles 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Sheet756 (4) Sheet156 (23) et935 Sheet937 Sheet939 II

Solution b and c:

К L 2 3 General Journal Debit Credit 4 Date 31-Dec Bad Debt Expense Dr ($12570- $3900) $8,670 b. $8,670 To Allowance for Doubtful Accounts 7 General Journal Debit Date Credit 31-Dec Bad Debt Expense Dr ($12570+ $400) To Allowance for Doubtful AcCounts $12,970 С. $12,970 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 Дл Sheet756 (4) Sheet156 (23) et935 Sheet937 Sheet939 II