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Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due 1 to
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due 1 to 30 $105,000 Total 0 31 to 60 61 to 90 Over 90 $51,000 28 Accounts receivable $645,000 $411,000 1% $33,000 5% $45,000 10% Percent uncollectible 78 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. 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 $13,500 credit. c. 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 $2,500 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C 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 $13,500 credit. 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 $2,500 debit. Show lessA View transaction list Journal entry worksheet 1 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,500 credit balance. Note: Enter debits before credits. General Journal Date Debit Credit Dec 31
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