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2 A Company is in the process of evaluating its Allowance for Doubtful Accounts at December 31, 2018. The following information is available; Year
2 A Company is in the process of evaluating its Allowance for Doubtful Accounts at December 31, 2018. The following information is available; Year Ended December 31, 2018: Cash Sales Credit Sales Total Sales December 31, 2018 Accounts Receivable $ 250,000 1,000,000 S 1,250,000 Total 335,000 AGING OF ACCOUNTS RECEIVABLE 0 1-30 30-60 175,000 100,000 1% 60-90 Over 90 25,000 15,000 20,000 2% 5% 10% 50% Record the December 31, 2018 year-end adjusting entries for the allowance for doubtful accounts under the following scenarios (show all work when making calculations): (A) 1% of credit sales; the December 31, 2018 balance in the allowance account is a $1,000 debit (B) 3% of total receivables; the December 31, 2018 balance in the allowance account is a $2,050 credit (C) As % of aged receivables (denoted above); the December 31, 2018 balance in the allowance account is a $2,500 debit
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