Question
Daley Company prepared the following aging of receivables analysis at December 31. Total 0 Accounts receivable...... $570,000 $396,000 Percent uncollectible... 1% 1 to 30 $90,000
Daley Company prepared the following aging of receivables analysis at December 31. Total 0 Accounts receivable...... $570,000 $396,000 Percent uncollectible... 1% 1 to 30 $90,000 2% Following in Days Past Due 31 to 60 $36,000 5% 61 to 90 $18,000 7% Over 90 $30,000 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. Exercise Aging of m method P3 Refer to the information in Exercise 9-14 to complete the following requirements. a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% 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 P3 unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 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 $1,000 debit. Exer Perc meth lint of gradit customers along with their amounts owed and the days past due at December 31. Ex
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