Question
Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable total, $660,000 0-$414,000 1 to 30- $108,000 31 to 60-$54,000 61
Daley Company prepared the following aging of receivables analysis at December 31.
Accounts receivable total, $660,000
0-$414,000
1 to 30- $108,000
31 to 60-$54,000
61 to 90 $36,000
over to 90- $48,000.
Percent uncollectible $414,000 1%
$108,000 2%
$54,000 5%
$36,000 7%
$48,000 10%
A) Complete the below table to calculate the estimated balance of allowance for doubtful accounts using aging of accounts receivable.
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 $ 13,800 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 $ 2,800 debit.
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. Estimated balance of allowance for uncollectibles = ______________
This question needs to be answered asap, thank you
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started