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A company uses the allowance method to estimate uncollectible accounts receivable. The computer produced the following aging of the accounts receivable at year end: Number
A company uses the allowance method to estimate uncollectible accounts receivable. The computer produced the following aging of the accounts receivable at year end: Number of Estimated % Days 2020 Uncollectable 2021 Outstanding 0-30 days 2% 305,000 220,000 30-60 days 5% 95,000 65,000 60-90 days 15% 30,700 55,000 Over 90 2594 75,000 58,500 days Total 505,700 398,000 Additional information 1. At September 30, 2020, the unadjusted balance in Allowance for Doubtful Accounts was a credit of $5,875. 2. In 2021, $26,500 of accounts was written off as uncollectible and 56,200 of accounts previously written off was collected. a) The estimated percentages uncollectible are the same for both years. Calculate the estimated uncollectible accounts at December 31, 2020 is 34205 Calculate the estimated uncollectible accounts at December 31, 2021 is 30525 b) Record the adjusting entry on December 31, 2020. Debit to Bad debt expense for 40080 for 2008 by Record the adjusting entry on December 31, 2020, Debit to Bad debt expens 3 Yor40000 Credit to Allowance for Doubtful Accounts Yor 40000 c) Record the write off of uncollectible accounts in 2021 Debit to Allowance for Doubtful Account for 240135 Credit to Accounts receivable for 24325 a Record the collection of accounts previously written alt in 2021 Debit 10 . for Kredit to + for Debit to You kredit to Tor d) Record the collection of accounts previously written off in 2021, Debit to for Credit to e for Debit to for Credit to for e) Prepare the adjusting entry on December 31, 2021. Debit to for A Credit to for 1) The carrying amount of accounts receivable at December 31, 2020
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