Question
Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable $570,000 Percent uncollectible Required: Days Past Due 0 1
Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable $570,000 Percent uncollectible Required: Days Past Due 0 1 to 30 31 to 60 61 to 90 Over 90 $396,000 $90,000 $36,000 $18,000 $30,000 1% 2% 5% 7% 10% a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. (Use cells A4 to G6 from the given information to complete this question.) Accounts Receivable Percent Uncollectible x (%) Estimated Uncollectible Not due: X = 1 to 30: 31 to 60: x = X = 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 $3,600 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 $100 debit. (Use cells A3 to A23 from Chart of Accounts and A4 to G6 from the given information to complete this question.) $3,600 CREDIT $100 DEBIT No PART B Date 31-Dec PART C 31-Dec General Journal Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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