4 Make the entry on 12/31/2002 for this below - assume they have not had any entries to the Allowance prior to this. DATE Account Debit Credit Accounts Receivable (gross) at 12/31/2002 is the following aged: Age 1-30 days 31-60 days 61-90 days over 90 days Total A/R $ $ $ $ Amount 60,000 40,000 30,000 10,000 140,000 Target Allowance (% they don't think they can collect) 5% 10% 50% 90% 5 Based on the above schedule, how much should they have in the Allowance for Doubtful accounts? 6 Make the Journal entry to adjust the allowance account. Use #4 answer as the current amount in that account DATE Account Debit Credit 7 Early the next year they decide to write off the receivable from a customer for $2,000 Describe this with a journal entry DATE Account Debit Credit NOTE: The Following 4 problems are connected to the same company ABC Software has revenue of 300,000 in 2002 and estimates they should put 10% of revenue in the Allowance for Doubtful accounts. 07 108 109 1104 111 112 113 Make the entry on 12/31/2002 for this below - assume they have not had any entries to the Allowance prior to this. DATE Account Debit Credit Accounts Receivable (gross) at 12/31/2002 is the following aged: $ $ Age 1-30 days 31-60 days 61-90 days over 90 days Total A/R Amount 60,000 40,000 30,000 10,000 140,000 Target Allowance (% they don't think they can collect) 5% 10% 50% $ $ $ 90% 126 127 128 5 Based on the above schedule, how much should they have in the Allostance for Doubtful accounts 129 130 1311 132 6 Make the Journal entry to adjust the allowance account. Use #4 answer as the current amount in that account Debit DATE Account Credit