a. Determine the total estimated uncollectable accounts for Culloden Ltd at 31 December 2020

b. Prepare the adjusting entry at 31 December 2020 to record the bad debts expense

c. On the 3^rd December 2020 a $3,050 customer account balance is confirmed as uncollectable. Provide the journal entry to record the write-off

d. If Culloden used the direct-write off method how would the journal entry in part (c) be recorded?

e. Why would Culloden Ltd use the allowance method of accounting for bad debts rather than the direct write-off method?

Culloden Ltd analysed its accounts receivable balances at 31 December 2020 and prepared an ageing analysis of the account as listed below. The percentage of each aged group that have been proven uncollectable in the past are shown next to the aged balances. Age of Accounts Estimated uncollectable % Balance Current 1% $105,000 31-60 days past due 6% 68,000 61-90 days past due 25% 10,040 Over 90 days past due 45% 5,600 The company uses the allowances method to account for bad debts. On the 31st December 2020 the credit balance of the Allowance for Doubtful Debts account was $4,200 before any adjustments. (No narrations are required for the journal entries). Required: a) Determine the total estimated uncollectable accounts for Culloden Ltd at 31 December 2020 (2 marks) b) Prepare the adjusting entry at 31 December 2020 to record the bad debts expense (2 marks) c) On the 3rd December 2020 a $3,050 customer account balance is confirmed as uncollectable. Provide the journal entry to record the write-off (2 marks) d) If Culloden used the direct-write off method how would the journal entry in part (c) be recorded? (2 marks) e) Why would Culloden Ltd use the allowance method of accounting for bad debts rather than the direct write-off method? (1 mark) Word limit: maximum 50 words