Paloma Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging

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Paloma Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.
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 $300 debit.
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 credit.

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Question Posted: Mar 18, 2015 10:42 AM

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Paloma Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging

Question:

Days Past Due Total I to 30 31 to 60 61 to 90 Over 90 Accounts receivable$95,000 6,000 $15,000 $6,000 Percent uncollectible $3,000 $5,000 1% 2% 4% 7% 12%

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