Chi Innovative Tech Inc. (IT) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $100,000 and estimated that 12 of 1 percent of those sales would be uncollectible Required: 1. Prepare the November adjusting entry for bad debts, 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $89.000. aged as follows: (1)1-30 days old, $75.000 (2) 31-90 days old $10.000; and (3) more than 90 days old $4.000 The average rate of uncollectibility for each age group is estimated to be ( 10 percent. (2) 20 percent, and (3) 40 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of-year adjusting entry is made the Allowance for Doubtful Accounts has a $1.600 credit balance at December 31 4. Snow now the various accounts related to accounts receivable should be shown on the December 31 balance sheet Complete this question by entering your answers in the tabs below > Record the adjusting entry for bad debts as of November 30. Note: Enter debits before credits. General Journal Debit Credit Date November 30 Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $89,000, aged as follows: (1) 1-30 days old, $75,000; (2) 31-90 days old, $10,000; and (3) more than 90 days old, 54,000. The average rate of uncollectibility for each age group is estimated to be (1) 10 percent. (2) 20 percent, and (3) 40 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. Show less 1-30 31-90 >>90 Total Accounts Receivable Estimated Uncollectible (9) Estimated Uncollectible (5) % % % Required 1 Required 3 > Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,600 credit balance at December 31. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits General Journal Debit Credit Date December 31 @ Let's get back or We couldn't upd your device was time 10:24 AMT Device was actively in use a Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Inc. (ITI) Balance Sheet (partial) At December 31
