1 2 Daley Company prepared the following aging of receivables analysis at December 31. 3 456960 Accounts receivable Total $570,000 0 $396,000 Percent uncollectible 1% 7 Required: 1 to 30 Days Past Due 31 to 60 61 to 90 Over 90 $90,000 2% $36,000 5% $18,000 $30,000 7% 10% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables 10 method. 9 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% + 11 12 (Use cells A4 to G6 from the given information to complete this question.) 13 14 Estimated balance of allowance for uncollectibles 15 16 b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. 17 Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. 4.50% $12,000 credit 18 19 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 $1,000 debit. 20 $1,000 debiit 21 (Use cells A3 to A22 from "Chart of Accounts" and A16 to AF19 from from the given information to complete this question.) 22 23 Part 24 B Date December 31 25 26 27 C December 31 28 29 30 31 General Journal Debit Credit