4 00:54 37 Innovative Tech Inc. (TI) has been using the percentage of credit sales method to estimate bad debts. During November ITI sold services on account for $140,000 and estimated that 1/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year end, total Accounts Receivable is $86 700 aged as follows: (0)1-30 days old, $72,000. (2) 31-90 days old. $11.000, and (3) more than 90 days old, $3,700. The average rate of uncollectibility for each age group is estimated to be (1) 11 percent. (2) 22 percent and (3) 44 percent respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1450 credit balance at December 31 Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet Book Hint References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) 4 Required: Required 2 Required Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select 'No Journal Entry Hequired in the first account field) 00-5425 View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of November 30 Heerences Note: Enter debits before credits Date General Journal Debit Credit November 30 Record entry Clear entry View general journal NU 3 required References Starting in December, ITI switched to using the aging method. At its December 31 year end, total Accounts Receivable is $86,700, aged as follows: (1) 1-30 days old, $72,000; (2) 31-90 days old, $11,000; and (3) more than 90 days old, 53,7002 The average rate of uncollectibility for each age group is estimated to be (1) 11 percent. (2) 22 percent, and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year and balance for the Allowance for Doubtful Accounts Show less 01-00 >90 Total Accounts Receivable Estimated Uncollectible (%) Estimated Uncollectible (5) % % Required 1 Required 2 Required Required 00:54:03 Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,450 credit balance at December 31 Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required the first account field) View transaction list -Book Journal entry worksheet References Record the adjusting entry for bad debts as of December 31. Note: Enter debts before credits Date General Journal Debit Credit December 31 Record entry Clear entry View general journal Mc PURUWO LUDULI Accounts 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.450 credit balance at December 31 Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet 00:53:40 alani Complete this question by entering your answers in the tabs below. Hint References Required 1 Required 2 Required Required 4 Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet Innovative Tech Ine (IT) Balance Sheet (partial) Al December 31