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Daley Company prepared the following aging of receivables analysis at December 31. Exercise 9-8 Aging of receivables method P3 Days Past Due Total 1 to
Daley Company prepared the following aging of receivables analysis at December 31. Exercise 9-8 Aging of receivables method P3 Days Past Due Total 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable............. Percent uncollectible ....... $570,000 $396,000 $90,000 2% $36,000 5% $18,000 7% $30,000 1% 10% a. Estimate the balance of the 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 $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
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