Answered step by step
Verified Expert Solution
Question
1 Approved Answer
All parts please and thank you. Innovative Tech Incorporated (TI) has been using the percentage of credit sales method to estimate bad debts. During November.
All parts please and thank you.
Innovative Tech Incorporated (TI) has been using the percentage of credit sales method to estimate bad debts. During November. ITI sold services on account for $160,000 and estimated that 1/2 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, iti switched to using the aging method At its December 31 year-end, total Accounts Receivable is $80.200, aged as follows: (1) 1 to 30 days old, $67,000 (2) 31 to 90 days old, $10,000; and (3) more than 90 days old, $3,200. The average rate of uncollectibility for each age group is estimated to be ( 11 percent. (2) 22 percent, and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.200 credit balance at December 31 Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts receivable should be shown on the December 37 balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Re 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account Red.) View transaction Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 1 Record the adjusting entry for bad debts as of November 30, Not: Enter debits before credits General Journal Debit Credit Date November 30 HE Next Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Starting in December, II switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $80,200, aged as follows: (1) 1 to 30 days old, $67,000; (2) 31 to 90 days old, $10,000; and (3) more than 90 days old, $3,200. The average rate of uncollectibility for each age group is estimated to be (1) 11 percent, (2) 22 percent, and (3) 44 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Show less 1 to 30 31 to 90 Over 90 Total Accounts Receivable Estimated Uncollectible (%) Estimated Uncollectible ($) Required 1 Required 3 > Requinea 1 Hequired 2 Required Required Before the end of year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,200 credit balance of December 31 Prepare the December 31 adjusting entry (If no entry is required for a transaction/event, select No Souma Entry Required in the first account d.) View ramactions Journal entry worksheet 1 Record the adjusting entry for bod debts as of December 31 Na teritor credits General Journal Det Credit December 31 CH Required 1 Required 2 Required 3 Required 4 Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Incorporated (II) Balance Sheet (partial) At December 31 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started