I . w A A B D E F G . 1 Question 3 A B D 2 opening AIR $ 85,000 $ 5,000 $ 80,800 $ 123,456 3 closing A/R $ 75,000 $ 7,000 $ 68,880 $ 213,546 4 net sales $ 320,000 $ 126,000 $ 1,500,000 $ 1,234,567 5 6 ART 7 DSO 8 9 Question 4 10 Before the year end adjustments, Company L's allowance for doubtful accounts balance of $7,000 DR 11 The year-end balance for the allowance for the allowance for doubtful accounts will be based on the aging schedule shown. 12 13 Complete the table for the estimated amount of bad debt of each aging category 14 Aging Category Bad Debt % Balance Estimated Amount of Bad Debt 15 Less than 20 days 3.00% $120,000 16 20 - 30 days 6.00% $90,000 17 31 - 60 days 9.00% $40,000 18 61-90 days 23.00% $17,500 19 90-120 days 35.00% $11,000 20 120 + days 60.00% $18.444 21 22 23 a) Prepare the journal entry to record bad debt expense at year-end (December 31, 2015), using the balance sheet method. 24 b) Prepare the journal entry to record the write-off of Customer A's account on March 31, 2016 for $ 4,321 25 c) Customer A returns and pays the account in full. Prepare the journal transactions to reverse the write-off and record the payment. 26 27 Date Description DR 28 a) 29 30 31 32 b) 33 34 35 36 ) 37 38 39 40 41 42 CR 42