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5 Brighton, Inc. has been using the percentage of credit sales method to estimate bad debts. During November, Brighton, Inc. sold services on account for

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5 Brighton, Inc. has been using the percentage of credit sales method to estimate bad debts. During November, Brighton, Inc. sold services on account for $150,000 and estimated that 14 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts (using the percentage of sales method). 2. Starting in December, Brighton, Inc. switched to using the accounts receivable aging method. At its December 31 year-end, total Accounts Receivable is $83,400, aged as follows: (1) 1-30 days old. $69.000, (2) 31-90 days old. $11,000; (3) more than 90 days old, $3,400. 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 $1,300 credit balance at December 31 Prepare the December adjusting entry for bad debts (using the aging of accounts receivable method) A ( 1 Record the adjusting entry for bad debts as of November 30. Note: Enter debits before credits. General Journal Debit Credit Date November 30 Record entry Clear entry View general journal Starting in December, Brighton, Inc switched to using the aging of accounts receivable method. At its December 31 year-end, total Accounts Receivable is $83,400, aged as follows: (1) 1-30 days old, $69,000, (2) 31-90 days old, $11,000; and (3) more than 90 days old, $3,400.- The average rate of uncollectibllity 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. Show less 1-30 31-90 >90 Total Accounts Receivable Estimated Uncollectible (%) Estimated Uncollectible (5) % % %

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