Chapter $8$ Homework: Accounts Receivable

$0\mathrm{.}75\%$ of net credit sales. During the year, uncollectible receivables amounting to $$264,000$ were written off.

Required

a$.$ Compute the ending balance in the Allowance for Doubtful Accounts at December $31.$

b$.$ Prepare its entries $(1)$ to write off uncollectible accounts and $(2)$ to recognize bad debt expense.

$\backslash$table$[[$Ref$.,$Account Name,Dr$.,$Cr$.],[1.$ Dec. $31,,0,0],[*{*}^{},0,0],[$To write$-$off uncollectible accounts,,$],[2.$ Dec. $31,*{*}^{},0,0],[*{*}^{},0,0],[$To recognize bad debt expense,$082+2,]]$

$\backslash$table$[[,$Accounts,Probability of$],[,$Receivable,Collection,Accounts$],[$Less than $30$ days,$$780,000,95\%,2,600],[31-90$ days,$240,000,90\%,1,000],[91-120$ days,$132,000,70\%,733],[$Greater than $120$ days,$48,000,40\%,1,600],[,$$$1,200,000,,]]$

Allowance for Doubtful Accounts balance, year$-$end &

Percentage of receivables older than $91$ days $\%?$

Average balance of receivables greater than $120$ days due $$?$