9-6

U write oll the customer, Alliance Inc, Journalize the entry to MIU LIU write-ott, assuming that (a) the direct write-off method is used and (b) the allowance method is used. 50 50 ow w EX 9-6 Providing for doubtful accounts At the end of the current year, the accounts receivable account has a debit balance of OB). 4 $6,800,000 and sales for the year total $81,500,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: a. The allowance account before adjustment has a debit balance of $68,250. Bad debt expense is estimated at % of 1% of sales. b. The allowance account before adjustment has a debit balance of $68,250. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $575.000. c. The allowance account before adjustment has a credit balance of $45,000. Bad debt expense is estimated at 1 of 1% of sales. d. The allowance account before adjustment has a credit balance of $45.000. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $450,000 Ruto, EX 9-7 Number of days past due OBJ.4 Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot's credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 8 $12,000 Bales Auto October 11 2.400 Derby Auto Repair June 23 3,900 Lucky's Auto Repair September 2 6,600 1.100 per 19