Question
Daley Company prepared the following aging of receivables analysis at December 31. Total Days Past Due 0 1 to 30 31 to 60 61 to
Daley Company prepared the following aging of receivables analysis at December 31.
| Total | Days Past Due | |||||
|---|---|---|---|---|---|---|
| 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||
| Accounts receivable | $ 620,000 | $ 406,000 | $ 100,000 | $ 46,000 | $ 28,000 | $ 40,000 |
| Percent uncollectible | 2% | 3% | 6% | 8% | 11% | |
a. Complete the table below 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 $4,600 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 $1,100 debit.
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Intermediate Accounting principles and analysis
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
2nd Edition
471737933, 978-0471737933
