Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total $595,000

image text in transcribedimage text in transcribedimage text in transcribed

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total $595,000 Accounts receivable Percent uncollectible 0 $401,000 3% 1 to 30 31 to 60 61 to 90 Over 90 $95,000 $41,000 $23,000 $35,000 4% 7% 9% 12% a.Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. Accounts Receivable Percent Uncollectible (%) Not due: % = % = 1 to 30: 31 to 60: % 61 to 90: X % = Over 90: X % = Estimated balance of allowance for uncollectibles b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,100 credit and $600 debit. View transaction list Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $4,100 credit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,100 credit and $600 debit. View transaction list Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $600 debit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

GAO Financial Audit Manual Volume 2 Updated March 2021

Authors: United States Government GAO

2021 Edition

B091WM9DZW, 979-8733082875

More Books

Students also viewed these Accounting questions

Question

Additional Factors Affecting Group Communication?

Answered: 1 week ago