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4 parts to complete. all pictured 3 Sammy's Small Engine Shop uses the aging of accounts receivable method to estimate its bad debts expense. On
4 parts to complete. all pictured 3 Sammy's Small Engine Shop uses the aging of accounts receivable method to estimate its bad debts expense. On December 31 of the current year, an aging analysis of accounts receivable revealed the following: 7 B Accounts Receivable Account Age $ 488,800 1-15 days 253,600 15-30 days 88 200 31-60 days 32,600 61-90 days 18,500 91-120 days 8680 Over 120 days 10 11 12 13 Estimated Uncollectible 0.5% 1.0% 5.0% 15.0% 35.0% 60.0% 15 890,380 Total 16 17 18 a) Calculate the amount of the allowance for doubtful accounts that should appear on the current balance sheet. 19 10 points 20 21 Accounts Estimated Amount 22 Receivable Account Age Uncollectible Uncollectible 23 1-15 days 24 15-30 days 25 31-60 days 26 61-90 days 27 91-120 days 28 Over 120 days 29 Total 31 32 33 b) The balance of the allowance for doubtful accounts on January 1 of the current year was $29,500 34 The accounts receivable written off during the current year totaled. $33,800 35 Prepare the journal entry showing the total accounts written off for the year. 36 37 38 39 40 5 points 41 42 c) Calculate the bad debts expense that should be reported on the current year's income statement. 43 New balance should be 45 Less: Prelim total 46 Expense 47 50 d) Prepare the adjusting entry to record the bad debts expense on December 31 of the current year. 51 52 53 54 55
4 parts to complete. all pictured
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