Chapter $8$ Homework: Accounts Receivable

Required

a$.$ Comoute the anding 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 debiexpense,,,i$.]]$

C$.$ At the end of the year, the allowance is estimated based on the following aging of accounts receivable. What is the estimated Allowance for Doubtful Accounts balance at December $31?$

$\backslash$table$[[,$Accounts,Probability,Number$],[,$Recelvable,of$,],[$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,$48,000,40\%,1,600]]$

Allowance for Doubtful Accounts balance, year$-$end $$0,x$

d$.$ What information is available from the aging analysis in part c that is not apparent when using the percentage of credit sales approach?

Percentage of receivables older than $91$ days: $**$ &s

Average balance of receivables greater than $120$ days due: $$0,x$