o.mheducation.com/hm.tpx ites Tools Help o.oRChapter,6.H., eMail-nhill1@LAHomepa

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o.mheducation.com/hm.tpx ites Tools Help o.oRChapter,6.H., eMail-nhill1@LAHomepage: eh.7H points mates uncollectible accounts using the allowance method at December 31. t prepared te following aging of receivables analysis Days Past Due Total counts receivable ercent uncollectible 1 to 30 31 to 60 61 to 90 $595,000 $401,000 95,000 S 41,000 23,000 Over 90 35,000 3% 7% 9% 1296 omplete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible (%) 1%,-| 41%) $ 401,000 x 95,000 x 41,000x 23,000 x 35,000 x t due: $ 12,030 3,800 2,870 2,070 4,200 $ 24,970 credit to 30 to 60: to 90: ver 90: stimated balance of allowance for uncollectibles 121%) & c. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doub i) $4,100 credit ii) $600 debit

Explanation / Answer

Date

Accounts receivable Percent uncollectible (%) Not due: $401,000 x 3% = $12,030 1 to 30: 95,000 x 4% = $3,800 31 to 60: 41,000 x 7% = $2,870 61 to 90: 23,000 x 9% = $2,070 Over 90: 35,000 x 12% = $4,200 Estimated balance of allowance for uncollectibles $24,970 Credit

Date

General Journal Debit Credit 31-Dec Bad debts expense 20,870 =24970-4100 Allowance for doubtful accounts 20,870 31-Dec Bad debts expense 25,570 =24970+600 Allowance for doubtful accounts 25,570

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