ACCT1101- Introduction to Financial Accounting P 9-4B Aging accounts receivable and accounting for bad debts Quisp Company has credit sales of $3.5 million for year 2015. At December 31, 2015, the company's Allowance for Doubtful Accounts has an unadjusted debit balance of $4,100. Quisp prepares a schedule of its December 31, 2015, accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. Ele Edit View Insert Format Tools Data Accounting Window Help DERY 1 2 3 4 5 6 7 8 December 31, 2015 Accounts Receivable $296,400 177,800 58,000 7,600 3,700 KIDSheet1 Sheet2 Sheet3 100% - Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Arial 10 B Expected Percent Uncollectible 2.0% 4.0 8.5 39.0 82.0 Chapter 9 ax Required 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31, 2015, using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense at December 31, 2015. Analysis Component 3. On July 31, 2016, Quisp concludes that a customer's $2,345 receivable (created in 2015) is uncollect- ible and that the account should be written off. What effect will this action have on Quisp's 2016 net profit? Explain.

P 9-4B Aging accounts receivable and accounting for bad debts Quisp Company has credit sales of \$3.5 million for year 2015. At December 31, 2015, the company's Allowance for Doubtful Accounts has an unadjusted debit balance of $4,100. Quisp prepares a schedule of its December 31,2015 , accounts receivable by age. On the basis of past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here. Required 1. Compute the required balance of the Allowance for Doubtful Accounts at December 31, 2015, using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense at December 31, 2015. Analysis Component 3. On July 31,2016 , Quisp concludes that a customer's $2,345 receivable (created in 2015) is uncollectible and that the account should be written off. What effect will this action have on Quisp's 2016 net profit? Explain