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Help with required 1-3 please use correct format On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of Problem 7-3A$14,500.
Help with required 1-3 please use correct formatĀ
On December 31, Jarden Co.'s Allowance for Doubtful Accounts has an unadjusted credit balance of Problem 7-3A$14,500. Jarden prepares a schedule of its December 31 accounts receivable by age.Aging accounts receivableAand accounting for badBCdebtsAccountsAge ofExpected PercentReceivableAccounts ReceivableUncollectibleP2 P32$830,000Not yet due1.25%3254,0001 to 30 days past due2.00486,00031 to 60 days past due6.50538,00061 to 90 days past due32.75612,000Over 90 days past due68.00[continued on next page] [continued from previous page]Required1. Compute the required balance of the Allowance for Doubtful Accounts at December 31 using an agingof accounts receivable.Check (2) Dr. Bad Debts2. Prepare the adjusting entry to record bad debts expense at December 31.Expense, $27,150Analysis Component3. On June 30 of the next year, Jarden concludes that a customer's $4,750 receivable is uncollectible andthe account is written off. Does this write-off directly affect Jarden's net income?Step by Step Solution
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