Question

Use the following information for the Exercises below. [The following information applies to the questions displayed below Daley Company prepared the following aging of receivables analysis at December 31 Days Past Due Over 90 31 to 60 $37,000 6% 61 to 90 Total 1 to 30 $31,000 $397,000 2% $19,e00 8% $575,000 $91,000 Accounts receivable Percent uncollectible 11% 3% Exercise 9-8 Aging of receivables method LO P3 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 $3,700 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 $200 debit.

this is question 4

this is question 5

Answer 1

a) Schedule

	Account receivable		Percent uncollectible		$ Uncollectible
Not yet due	397000		2%		7940
1 to 30 days	91000		3%		2730
31 to 60 days	37000		6%		2220
61 to 90 days	19000		8%		1520
Over 90 days	31000		11%		3410
Estimated balance of allowance for uncollectibles				=	17820

b) Adjusting entry

Date	account and explanation	Debit	Credit
Dec 31	Bad debt expense (17820-12100)	5720
	Allowance for doubtful accounts		5720

c) Adjusting entry

Date	account and explanation	Debit	Credit
Dec 31	Bad debt expense (17820+1100)	18920
	Allowance for doubtful accounts		18920