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1. Benzton Inc. had sales of $1,200,000 during 2015. Twenty-five percent of these were cash sales. In addition to the 2015 cash sales, $569,400 of

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1. Benzton Inc. had sales of $1,200,000 during 2015. Twenty-five percent of these were cash sales. In addition to the 2015 cash sales, $569,400 of the 2015 credit sales were collected during the year. $30,000 of accounts receivable were written off as being uncollectible during 2015. The December 31, 2014 Allowance for Doubtful Accounts was $16,400 credit balance. Also, the December 31, 2014 balance in the general ledger accounts receivable was $286,500: all of which was collected during 2015. In addition, $16,400 of thee accounts that were written off during 2014 were unexpectedly collected during 2015. On December 311 2015 Benzton completed an accounts receivable aging schedule. The following schedule provides the percent of the total accounts receivable by the category number of daysWT Accounts Category Receivable Age (days) Percentage 40 20 10 24 1-30 31-60 61-90 91-120 Over 120 Total NOTE: You will need to determine the accounts receivable December 31, 2015 ba lance and then you multiply the total accounts receivable amount by the above percentages. Page 1 of 4 Also, Benzton, based on 5 years of historical data, estimated the following percentages for each category that would be uncollectible at December 31, 2015: Estimated Loss percentage 2.5% 3.0% 4.25% 9% 45% Category Age (days) 1-30 31-60 61-90 91-120 Over 120 Required: NOTE: WHEN APPLICABLE ROUND ALL CALCULATIONS AND FINAL ANSWERS TO THE NEAREST WHOLE DOLLAR! 1) Prepare journal entries to record the following 2015 transactions: a. The write-off of $30,000 b. The recovery of $16, 400 general ledger account at December 31, 2015. December 31, 2015 for the accounts receivable that are estimated to 2) Recalculate the balance in the Allowance for Doubtful Accounts 3) Prepare the doubtful account adjusting entry to be recorded on be written-off during 2016

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