AutoSava OFF R$ Excel Project-ageing method (1) Home Insert Draw Page Layout Formulas Data Review View Share Comments T X LG Calibri I Body) VALA v 11 Ivy a Wraa Taxt General Pasic 1 1- A Merge & Center $ % ) Insert Delete Forma: Incas Conditional Format Cell Formatting as Table Styles Sort! Filler y Fird & Select C16 + x fx Your journal entry below must accommodate both debit balance and credit balance. H 1 A B D E E F 1 Write a formula onto Yellow Cells with Input Variables in Green Cells. Yellow cells must adjust in response to changes of the values in green cells. 2 Journalize to recognize bad debt expense and to set up a proper amount of allowance on 12/31/2017, based on the aging method. 3 4 Ages of A/R Probability of Bad Debt Balance of A/R Estimated Bad Debt 5 Before Due Date 1% 120,000 6 1-30 days past due 3% 150,000 7 31-60 days past due 6% 20,000 8 61-90 days past due 9% 15,000 9 91-120 days past due 12% 10,000 10 more than 120 days 20% 33,000 11 - Total 12 4 13 14 Allowance for Doubtful Accounts 15 170 Remember the balance of Allowance could be in debit or in credit. 10 16 Your journal entry below must accommodate both debit balance and credit balance. 17 18 19 20 Journal Entry 21 Bad Debt Expense 22 Allowance 23 24 2 25 26 27 28 29 Sheet1 + 2 + 14.4%