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HELP! Bonita Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total

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Bonita Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

Days

Past

Due

Total

Current

1 to 30

31 to 60

61 to 90

Over 90

Accounts receivable

$110,00

0

68,000

17,000

10,000

8,000

7,000

Percent uncollectible

1%

2%

5%

8%

13%

  1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accountsreceivable method.
  2. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assumethe unadjusted balance in the Allowance for Doubtful Accounts is a $550 credit.
  3. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assumethe unadjusted balance in the Allowance for Doubtful Accounts is a $300 debit.

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