Question

Required information [The following information applies to the questions displayed below.] 1.48 Daley Company prepared the following aging of receivables analysis at December 31. points Days Past Due Total $645,000 $411,000 Accounts receivable Percent uncollectible 1 to 30 $105,000 2% 31 to 60 $51,000 5% 61 to 90 $33,000 7% Over 90 $45,000 10% eBook 1% Hint Print 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 $5,100 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 $1,600 debit. Complete this question by entering your answers in the tabs below. Reg 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 < ReqA Req B and C >

Answer 1

Ans. A	Age group	Accounts receivables	Percent uncollectible	Amount uncollectible
	Not due	$411,000	1%	$4,110
	1 to 30	$105,000	2%	$2,100
	31 to 60	$51,000	5%	$2,550
	61 to 90	$33,000	7%	$2,310
	Over 90	$45,000	10%	$4,500
	Estimated balance of allowance for uncollectibles		$9,360
	*Amount uncollectible = Accounts receivable * Percentage uncollectibles
Ans. B	No.	Particulars	Debit	Credit
		Bad debt expense	$4,260
		Allowance for doubtful accounts		$4,260
		(To record bad debts expenses)
	*Bad debts expense = Estimated balance of allowance for uncollectibles - Un adjusted credit balance
		$9,360 - $5,100
		$4,260
Ans. C	No.	Particulars	Debit	Credit
		Bad debt expense	$10,960
		Allowance for doubtful accounts		$10,960
		(To record bad debts expenses)
	*Bad debts expense = Estimated balance of allowance for uncollectibles + Un adjusted debit balance
		$9,360 + $1,600
		$10,960