Help Seve accounts using the allowance method at December 31. It prepared the fo

Question

Help Seve accounts using the allowance method at December 31. It prepared the following aging of Daley Company estimates uncollectible recelvables analysis Days Past Due Total Accounts receivable Percent uncollectible 1 to 30 31 to 60 61 to 98 Over 90 $665,800 $415,000 $109,e00 $55,ee0 $37,000 $49,000 11% 2% 3% 6% 8% Estimate the balance of the Allowance for Doubtful A ccounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Allowance for Doubtful Accounts is a $13,900 credit Allowance for Doubtful Accounts is a $2,900 debit usting entry to record Bad Debts Expense using the estimate from part a Assume the unadjusted balance in the c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance Complete this question by entering your answers in the tabs below. Req A Req B and c

Explanation / Answer

1 Estimated balance of allowance for uncollectibles = 665000*4%= 26600 2 Bad debts expense 12700 =26600-13900       Allowance for Doubtful accounts 12700 3 Bad debts expense 29500 =26600+2900       Allowance for Doubtful accounts 29500

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