HOMEY Electronics Co. is one of the growing electronics companies in the HOMEY Kingdom of Bahrain. Ten years ago, it was founded by Mr. Ahmed Ali, the Managing Director, who aims to make HOMEY the shoppers' first choice. His vision is to be the only place shoppers get to have different models and brands out of a complete range of household needs. Recently, HOMEY launched a furniture section as a new addition to its showroom. HOMEY uses a solid accounting system and controls. It adopts the calendar year as its fiscal year. HOMEY Electronics is preparing its financial statements for the year ending December 31, 2022. A trial balance, along with several business-related appendices, are presented below: The succeeding appendices pertain to the different transactions that happened during the year that the company failed to recognize when preparing its unadjusted trial balance: Appendix1 HOMEY Deck MEMO HOMEY ELECTRONICS CO. Unadjusted Trial Balance December 31, 2022 TO: FINANCIAL CONTROLLER Debit BD Credit BD Cash in bank. Accounts receivable Allowance for Doubtful Accounts Inventory, January 1, 2022 Supplies. Prepaid insurance 13,090 61,600 FROM: ACCOUNTS SUPERVISORS 3,200 SUBJECT: AGING SCHEDULE OF ACCOUNTS RECEIVABLES 39,000 3,310 1,200 Prepaid rent..... 3,600 Purchases.. 70,000 Notes receivable (short-term). 7,500 Land 250,000 Equipment 55,000 Accumulated depreciation-Equipment. 40,000 In response to your inquiry about receivables, please note the following: On December 31, 2022, the company's Allowance for Doubtful Accounts had a credit balance of BD3,200 per the unadjusted trial balance. The accounts receivables department has prepared the aging schedule of accounts receivable below. Based on previous years' experience, we estimated the percentage of receivables in each category that will become uncollectable. This information is summarized here: Aging Schedule of Accounts Receivables Buildings 100,000 Accumulated depreciation-Buildings 20,000 Accounts Receivable Accounts payable... 23,000 Salaries payable. 8,000 Unearned revenue. 18,000 Loan 150,000 HOMEY, Capital... 309,040 HOMEY, Withdrawals. 2,400 Sales Revenue 100,000 Repairs and maintenance expense 820 Salaries expense.... 60,000 Advertising expense. 2,640 Utilities expense. 1,080 December 31, 2022 Age of Accounts Receivable Expected Percent of Uncollectable BD40,000 Not yet due 1.00% BD10,000 1 to 30 days past due 3.00% BD5,000 31 to 60 days past due 7.00% BD4,100 61 to 90 days past due 30.00% BD2,500 Over 90 days past due 60.00% BD 61,600 Totals 671,240 671,240 Page 2 of 18 Page 3 of 18