Assigrement 0 Help Save Total to 68 61 to 98 Over 98 $30,000 Accounts Percent re

Question

Assigrement 0 Help Save Total to 68 61 to 98 Over 98 $30,000 Accounts Percent receivable $570,eee $396 ,eee S90,000 $36,eee $18,000 1% 2% 5% 7% 18% uncollectible a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4 estimate uncollectibles, instead of the aging of recetvables method b. Prepare the adjusting entry to record Bad Det Expense using the estimat Allowance for Doubtful Accounts is a $12,000 credit e. Prepare the adjusting entry to record bad debts expense using the estimate from part a Allowance for Doubtful Accounts is a $1,000 debit 5% of total accounts recevable to e from part a Assume the unadjusted balance in the Assume the unadjusted balance in the Complete this question by entering your answers in the tabs below. Reg A Reg B and c Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5 estimate uncollectibles, instead of the aging of receivables method, Estimated balance of allowance for uncolectitles ng

Explanation / Answer

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.

Estimated balance of allowance for uncollectibles = $570000 x 4.5% = $25650 credit

b.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 $12,000 credit and $1,000 debit

Date

General Journal

Debit

Credit

Dec 31

Bad debts expense

13650

Allowance for doubtful accounts

13650

(25650 - 12000)

Dec 31

Bad debts expense

26650

Allowance for doubtful accounts

26650

(25650 + 1000)

Date

General Journal

Debit

Credit

Dec 31

Bad debts expense

13650

Allowance for doubtful accounts

13650

(25650 - 12000)

Dec 31

Bad debts expense

26650

Allowance for doubtful accounts

26650

(25650 + 1000)

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