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An analysis of XYZ's accounts receivable shows the following amounts: Month of sale November, 2022 October, 2022 September, 2022 August, 2022 June and July,
An analysis of XYZ's accounts receivable shows the following amounts: Month of sale November, 2022 October, 2022 September, 2022 August, 2022 June and July, 2021 Estimated percentage Balance of Accounts Receivable uncollectable $30 000 1% 13 000 3% 2 200 20% 5 100 30% 800 50% Credit terms are 1/7, n/45. The entity uses the ageing of accounts receivable basis for estimating uncollectable accounts. At 30 November, 2022, there is a $500 debit balance in Allowance for Doubtful Debts before adjustment. Required: a) Determine the total estimated uncollectable (1 mark) b) Prepare the adjusting entry at 30 November, 2022 to record bad debts expense (1 mark) c) In December 2022, a $1 500 customer balance is determined to be uncollectable. Prepare the journal entry. (1 mark) d) Determine the balance of Allowance for Doubtful Debts in December before the December adjustment. In your answer, please (1) calculate the balance amount and (2) indicate whether it is a debit or credit balance. (1 mark) *Narrations in the general journals are not required.
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