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A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible. a. Determine the
A partially completed aging of receivables schedule for Lindy Designs is shown below. Calculate the amount that is estimated to be uncollectible. a. Determine the amount estimated to be uncollectible by completing the aging of receivables schedule. Round calculations to the nearest dollar. Estimated Uncollectible Accts Age Interval Balance Percentage Amount Not past due $550,000 2.50% $ 1-30 days past due 96,500 4.00 31-60 days past due 43,750 9.50 61-90 days past due 22,250 16.00 91-180 days past due 5,600 31.00 181-365 days past due 3,100 60.00 Over 365 days past due 1,250 95.00 Total $722,450 $ b. If Allowance for Doubtful Accounts has a credit balance of $9,700, record the adjusting entry for bad debt expense for the year. Dec. 31 C. If Allowance for Doubtful Accounts has a debit balance of $9,700, record the adjusting entry for bad debt expense for the year. Dec. 31 Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $378,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 6% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if Allowance for Doubtful Accounts has a credit balance of $2,800 before adjustment? Oa. Bad Debt Expense $19,380 Allowance for Doubtful Accounts $19,380 Ob. Bad Debt Expense $18,880 Allowance for Doubtful Accounts $18,880 Oc. Bad Debt Expense $19,880 Allowance for Doubtful Accounts $19,880 d. Bad Debt Expense $20,880 Allowance for Doubtful Accounts $20,880 Merchandise with a sales price of $5,200 is sold on account with terms 2/10, n/30. The journal entry to record the sale would include a Oa. debit to Sales Discounts for $104 Ob. debit to Accounts Receivable for $5,076 Oc. c. debit to Cash for $5,200 Od. credit to Sales for $5,096
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