At December 31, 20X0, Oettinger Corporation, a premium kitchen cabinetmaker for the home remodeling industry, reported the following accounts receivable information on its year-end balance sheet: Gross accounts receivable Less: Allowance for credit losses $850,000 (25,000) $825,000 Accounts receivable (net) During 20X1, the company had credit sales of $8,200,000 of which it collected $7,975,000. Oettinger employs the sales revenue approach to estimate its bad debt provisions and, continuing to use the same 1% used in previous years, made the normal adjustment at the end of 20X1. Although 20X1 started off well, the industry experienced a slowdown in the last four months of the year, and cash collections consequently dropped off substantially. Moreover, a major customer, which owed Oettinger $85,000, unexpectedly filed for bankruptcy and went out of business during November, at which time its account was written off. Oettinger's controller is concerned that some customers are experiencing cash flow problems and that the company's allowance for credit losses is too low. As a result, she prepared the following schedule: % of Accounts Receivable Number of Days Past Balance Due 20% 0-30 40 31-60 35 61-90 3 91-120 2 Over 120 Estimated % Collectible 98% 95 85 75 50 Required: 1-a. Determine Oettinger's accounts receivable balance at December 31, 20X1. 1-b. Prepare a journal entry for each transaction affecting the accounts receivable balance for 20X1. 2-a. Prepare an aging analysis. 2-b. Compute the required balance in the Allowance for credit losses at December 31, 20X1. 3. Prepare any other required journal entries affecting the Allowance for credit losses for the year ended December 31, 20X1. (Do not duplicate any entries from requirement 1.) 4. Show Oettinger's balance sheet presentation of accounts receivable at December 31, 20X1. Req 1A Req 1B Req 2A Req 2B Req 3 Req 4 Determine Oettinger's accounts receivable balance at December 31, 20X1. Accounts receivable $ 8,200,000 Req 1A Req 1B Req 2A Req 2B Reg 3 Reg 4 Prepare an aging analysis. Oettinger Corporation Accounts Receivable Aging Schedule December 31, 20X1 Accounts receivable Uncollectibles Aging % Balance Percentage Amount % % Age % % 0-30 days 31-60 days 61-90 days 91-120 days 120 days or more % % % % % % Total 0 0 Req 1A Req 1B Reg 2A Req 2B Req 3 Reg 4 Compute the required balance in the Allowance for credit losses at December 31, 20X1. Required balance allowance Req 1A Req 1B Req 2A Req 2B Req 3 Reg 4 Show Oettinger's balance sheet presentation of accounts receivable at December 31, 20X1. Amount Gross accounts receivable Allowance for credit losses Accounts receivable (net)