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5 1. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. 2. Make the adjusting entry to record Bad Debts
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1. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. 2. Make the adjusting entry to record Bad Debts Expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $5,000 credit and use of the aging of accounts receivables method. 3. Make the adjusting entry to record Bad Debts Expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is an $8,000 debit and use of the aging of accounts receivables method. 4. Based on further analysis, assume we find that the percentages in the graphic "Percent Uncollectible by Age" are too high. When alerting the manager, she responds that this is intentional. What are the income statement impacts from the overstated percentages? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Percent receivable uncollectible (%) Not yet due X 1 to 30 X 31 to 60 X 61 to 90 Over 90 Estimated balance of allowance for uncollectibles $ 0 5 Tableau DA 9-2: Percent of sales method, percent of recelvables method, and aging of recelvables method LO P3 33 ints The manager asks you to assist her with the data analytics on bad debts expense at year-end. To do this, you access the following Tableau Dashboard for your company, Spoed eBook References Makeup of Current Assets Cash Accounts Receivable Inventory Supplies Accounts Receivable by Age Over 90 days past due 61-90 days past de c Taw 11 Saved Cash Accounts Receivable Inventory Suppies Accounts Receivable by Age Over 90 days past due 1 61-90 days past due 31-60 days past due 1-30 days past due Not yet due $0 $200,000 $600,000 $800,000 $400,000 Accounts Receivable (s) Percent Uncollectible by Age Makeup of Total Sales 70% Cash Sales 60% 50% 4096 Estimated Percent Uncollectible 3096 Credit Sales 20% 10% Percent Uncollectible by Accounts Credit Sales 196 Accounts Receivable 596 0% Not yet due 1-30 days31-60 days 61-90 days Over 90 days past due past due past due past due tableau 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable. 3. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $o existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume o $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable: Show less Complete this question by antering your answers in the tabs below. Req 1 and 2 Req3 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales meth in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sale 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for a 1. Estimate the balance of the Allowance for Doubtful Accounts 2. Estimate the balance of the Allowance for Doubtful Accounts Req 1 and 2 Req3 Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts. ### Accounts Percent receivable uncollectible (0) Not yet due 1 to 30 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectibles Saved Cash Accounts Receivable Inventory Suppies Accounts Receivable by Age Over 90 days past due 1 61-90 days past due 31-60 days past due 1-30 days past due Not yet due $0 $200,000 $600,000 $800,000 $400,000 Accounts Receivable (s) Percent Uncollectible by Age Makeup of Total Sales 70% Cash Sales 60% 50% 4096 Estimated Percent Uncollectible 3096 Credit Sales 20% 10% Percent Uncollectible by Accounts Credit Sales 196 Accounts Receivable 596 0% Not yet due 1-30 days31-60 days 61-90 days Over 90 days past due past due past due past due tableau 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable. 3. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $o existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume o $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable: Show less Complete this question by antering your answers in the tabs below. Req 1 and 2 Req3 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales meth in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sale 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for a 1. Estimate the balance of the Allowance for Doubtful Accounts 2. Estimate the balance of the Allowance for Doubtful Accounts Req 1 and 2 Req3 Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts. ### Accounts Percent receivable uncollectible (0) Not yet due 1 to 30 31 to 60 61 to 90 Over 90 Estimated balance of allowance for uncollectibles Step by Step Solution
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