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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.
|
|
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| 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% |
- Estimate the balance of the Allowance for Doubtful Accounts using the aging of accountsreceivable method.
- 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.
- 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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