Question

Required information The following information applies to the questions displayed below Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 1 to 30 $104,000 31 to 60 61 to 90 Over 90 Accounts receivable $640,000 $32,000 7 $410,000 $50,000 $44,000 12 Percent uncollectible 31 4% 91 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 $5,000 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 $1,500 debit. s Complete this question by entering your answers in the tabs below. Req 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 Receivable Percent Uncollectible (%) Not due <Prev 6 of 7 Next

Answer 1

Solution a:

н IR к Accounts Receivable Percent Uncollectible (%) Not due: $410,000 x 3% 1 to 30: $104,000x 4%= 31 to 60: $50,000 x 61 to 90: $32,000 x 9% = Over 90: $44,000x 12% = Estimated balance of allowance for uncollectibles I 7%= $12,300 $4,160 $3,500 $2,880 $5,280 $28,120 10 13 14 15 16 17 18 20 21 22 23 24 26 27 28 29 30 34 36 37 38 39 40 41 42 43 et935 Sheet756 (4) ) Sheet937 Sheet156 (23) Sheet939

Solution b and c:

K м. 0 УК TR Credit Date General Journal 31-Dec Bad Debt Expense Dr ($28120-$5000) To Allowance for Doubtful Accounts Debit $23,120 $23,120 Credit Date General Journal 31-Dec Bad Debt Expense Dr ($28120+ $1500) To Allowance for Doubtful Accounts Debit $29,620 I $29,620 13 14 15 42 43 44 et935 Sheet756 (4) ) Sheet937 Sheet156 (23) Sheet939