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I need help with this question. I'm studying for my test and want to know the answer to the question below with equations and explanations.
I need help with this question. I'm studying for my test and want to know the answer to the question below with equations and explanations. Please provide equations and explanations not just the answer as I want to know where it comes from so i can learn it.
Rianna.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts based on the information below. Accounts receivable % uncollectible Total 0-30 days 31-60 days 61-90 days 91-120 days over 120 days $377,000 $222,000 $90,000 $38,000 $15,000 $12,000 1% 4% 5% 8% 10% 1. Based on the above, what is the total estimate of accounts receivable that will be uncollectible? (You must support your answer with calculations) 2. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in the table above. Porter's beginning balance before the adjusting entry in the Allowance for Doubtful Accounts account is a $4,000 debit. DATE ACCOUNT/DESCRIPTION DEBIT CREDIT 3. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. DATE ACCOUNT/DESCRIPTION DEBIT CREDIT 4. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in the question above. Prepare the journal entry(ies). DATE ACCOUNT/DESCRIPTION DEBIT CREDITStep by Step Solution
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