ACCT 102A CHAPTER 8 ASSIGNMENT Oct 2019M The following information pertains to the sales and accounts receivable of Bartex Company a Allowance for doubtful accounts balance at January 1, 2013 was 5,000 (credit balance) and accounts receivable written off during the year totalled $10,000 b. During the year, an amount totalling $2,000 that was previously written off was recovered. c. Total sales for the year ended December 31, 2013 were $1,000,000, of which 90% were credit sales Sales discounts are $20,000 d. The accountant for Bartex Company has prepared the following schedule of the December 31, 2013 accounts receivable by age, and on the basis of past experience has estimated the percentage of the receivable in each age category that will become uncollectible: Age of Accounts December 31, 2013 Expected Percentage Recelvable Accounts Receivable Uncollectible Current (less than 31 days) $200,000 1.00% 1 to 30 days past due 70,000 5.00% 31 to 60 days past due 20,000 10.00% over 60 days past due 10,000 20.00% 12/31/2013 Balance $300,000 REQUIRED: (Please include date and explanation in all journal entries). 1. Prepare the adjusting entry needed on the books of Bartex Company to recognize bad debts expense assuming the company estimates its bad debts at two percent of net credit sales (5 marks) 2(a) Assume the company uses the balance sheet approach to estimate bad debt expense. Calculate the amount that should appear in the December 31, 2013 balance sheet as the Allowance for Doubtful Accounts (3 marks). USE THE SPACES IN THE TABLE ABOVE TO CALCULATE YOUR ANSWER. 2(b) Prepare the journal entry to record bad debt expense for 2013 using the balance sheet approach (4 marks). 3. On January 15, 2014 an account from Mr. Blue that was previously written off was recovered. The amount was $3,000. Please record this recovery