At the end of Year 5, your consulting firm has been hired by a local service firm to help forecast future uncollectible accounts. You ask the service firm to provide several years of data on the percentage of uncollectible accounts based on the age categories of accounts receivable at the beginning of the year. With these historical percentages, you estimate a trendline (dashed line) to predict the percentage of uncollectible accounts for Year 6, the upcoming year. Graphs were provided to management from your analysis of each of the three age categories, as well as balances of accounts receivable by age category at the end of Year 5 as follows: Percentage of Uncollectible Accounts: Not Yet Past Due 1-30 Days Past Due Over 30 Days Past Due 46% 18% 8% 61% 16% 44% 6% 16 4% -59 5% 43% 14% 15% 42% 4% 14% 24% 42 42% 2% 3% 12% 40% 40% 0% 10% 38% 3 Year 1 2 5 4 6 Year 1 2 4 3 5 6 Year 1 2 3 5 6 Accounts Receivable by Age: End of Year 5 Check my work Accounts Receivable by Age: End of Year 5 5128,000 $140,000 $120,000 $100,000 $84,000 $80,000 560,000 540,000 $35,000 $20.000 50 Not Yet Past Due 1-30 Days Past Due Over 30 Days Paste Click here to open the graphis) in a new tab. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 67 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 67 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Required: 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 67 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 67 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit ) at the end of Year 5 (before any adjustment). Prepare the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 which age categories predicts the lowest percentage of uncollectible accounts for Year 6? Not yet post due O1:30 dayn past oue Over 30 days past due Red Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Which age categories predicts the highest percentage of uncollectible accounts for Year 6? Not yet past due 1-30 days past due Over 30 days past due nces Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph)? Accounts Receivable ed 3. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? Estimated Uncollectible Accounts Required 3 Required 5 > Cher Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any adjustment). Prepar adjusting entry at the end of Year 5. (If no entry is required for a particular transaction/event, select "No Journal Entry Required first account field.) View transaction list Journal entry worksheet 1 Record the adjustment to the allowance for uncollectible accounts. Note: Enter debits before credits General Journal Debit Event 1 Credit 1. Which age categories predicts the lowest percentage of uncollectible accounts for Year 6? 2. Which age categories predicts the highest percentage of uncollectible accounts for Year 6? 3. What is the dollar amount of accounts receivable that are 1-30 days past due at the end of year 5 (bottom graph) 4. Calculate the total amount of estimated uncollectible accounts for Year 6 (Hint: Use all three age categories)? 5. Assume the balance of Allowance for Uncollectible Accounts is $4,850 (credit) at the end of Year 5 (before any ac the adjusting entry at the end of Year 5. 6. Determine the amount of net accounts receivable the company would report at the end of Year 5. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Determine the amount of net accounts receivable the company would report at the end of Year 5. Net Accounts Receivable
