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21 T 1 - x, xa-A- Font AaBbCel AaBbCcDc AaBbCcDc AaBbC6 AaBbcc AaBCCD Heading 5 1 Normal 1 No Spaci. Heading 1 Heading 2 Heading

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21 T 1 - x, xa-A- Font AaBbCel AaBbCcDc AaBbCcDc AaBbC6 AaBbcc AaBCCD Heading 5 1 Normal 1 No Spaci. Heading 1 Heading 2 Heading 6 Paragraph Styles Question (5) Molina Company had a $700 credit balance in Allowance for Doubtful Accounts at December 31, 2016, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $120,000 1 1-30 days past due 20,000 396 31-60 days past due 10,000 6% 6190 days past due 10,000 1296 Over 90 days past due 8.000 3096 Total Accounts Receivable $168.000 Instructions (a) Prepare the adjusting entry on December 31, 2016, to recognize bad debt expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts 109 w P assignment 2 Microsoft Word Page Layout References Mailings Review View A ses New Rom 12 -AA I U-be x, x A - 19-21 AaBbCel AaBbccc AalbCcDc AaBbC6 AaBbCc ABCD Headings Normal No Spaci... Heading 1 Heading 2 Heading 6 Font Paragraph Styles 10,000 129 61-90 days past due Over 90 days past due Total Accounts Receivable 8,000 30% $168.000 Instructions (2) Prepare the adjusting entry on December 31, 2016, to recognize bad debt expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had a $500 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. (@) Assume that the company has a policy of providing for bad debts at the rate of 1% of sales, that sales for 2016 were $550,000, and that Allowance for Doubtful Accounts had a $650 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts. - W P

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