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2. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 130 days 3190 days More than 90 days Estimated

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2. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 130 days 3190 days More than 90 days Estimated balance in allowance for doubtful accounts 3. Prepare the December 31, 2014, adjusting entry.(lf no entry is required for a transactioni'event, select "Nojournal entry required" in the first account field} View transaction list Journal entry worksheet Record the December 2014 year-end adjusting entry for bad debts. Note: Enter debits before credits. Dec. 31, 2014 Clear entry View general journal 4. Show how the various accounts related to accounts receivable should be shown on the December 31, 2014, balance sheet. (Amounts to be deducted should be indicated with minus sign.) Accounts receivable, net of allowance Innovations Corp (IC) uses the percentage of credit sales method to estimate bad debts each month and then uses the aging method at yearend. During November 2014, IC sold services on account for $144,000 and estimated that 1/2 of one percent of those sales would be uncollectable. At its December 31 yearend, total Accounts Receivable is $129,000, aged as follows: (1) 1 to 30 days old, $95,000; (2) 31 to 90 days old, $24,000; and (3) more than 90 days old, $10,000. Experience has shown that for each age group, the average rate of uncollectability is (1) 1 percent, (2) 15 percent, and (3) 40 percent, respectively. Before the endofyear adjusting entry is made, the Allowance for Doubtful Accounts has a $4,000 credit balance at December 31, 2014. Required: 1. Prepare the November 2014 adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the November 2014 adjusting entry for bad debts. Note: Enter debits before credits. NOV 30, 2014 Record entry Clear entry View general journal

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