Question
At December 31, Camino Tires Company reported the following results for its calendar year from the adjusted trial balance. Credit sales $2,200,000 Accounts Receivable 330,000
At December 31, Camino Tires Company reported the following results for its calendar year from the adjusted trial balance.
Credit sales | $2,200,000 |
Accounts Receivable | 330,000 |
Allowance for doubtful accounts (debit balance) | 3,500 |
Required 1:
Calculate the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.0% of credit sales.
Enter amount here: __
Required 2:
Calculate the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 9.0% of year-end accounts receivable.
Enter amount here:__
Required 3:
Calculate the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated using the aging of accounts receivable method based on the percentages below.
Aging of Receivables:
Uncollectible Percentage | ||
Current | 214,500 | 3.0% |
1 to 30 | 56,100 | 7.0% |
31 to 60 | 33,000 | 18.0% |
61 to 90 | 16,500 | 35.0% |
Over 90 | 9,900 | 70.0% |
Total | 330,000 |
Enter amount here: __
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