Innovative Tech Inc. T) has been using the percentage of credit sales method to estimate bad debts. Duing November, ITI sold services on account for $140,000 and estimated that 12 of 1 percent of those sales woud be uncolectible. Required 1. Prepare the November adjusting entry for bad debts 2. Starting in December, ITI swched to using the aging method. At its December 31 year end, total Accounts Recelveble is $06.800. aged es follows 1-30 deys oid, $73,000, (2) 31-90 deys oid, $10.000, and (3 more thean 90 deys old, $3,800o. The average rate of uncollectbity for each ege group is estimated to be 10 percent, (2) 20 percent, and ()40 percent, respectively Prepere a schedule to estimate an appropriste year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of year adjusting entry is made, the Alowance for Doubtful Accounts has a $1,500 credit balance et December 31. Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet Complete this question by entering your answers in the tabs below. RequiredRequired 2 Required 3qures 4 Prepare the November adjusting entry for bad debes. (no entry is required for a transaction/event, select "No Journal Entry Required" in the first acceunt feid) w Journal entry worksheet cot this qution by tering pour anwe in the tabes belicw ur d d3 cn th ang eoy tor bud aa asor owamber 30 Sating in December, wche t using the aging hod At is becemoer 30 erend l Accunts eceable 430, age afw )-30 ys aid, a23,300, ca 31-0 da o, cea, and w the se cave ld, 43.0 The avaage rae sh age e t 3 o e, 12 30 p and(3)3 plyPerewhe t ere an prie yearend bee br the e or o Dei Crd Te Noveber 30 A Cied Unecte N y A y aAt Record entry view general joural Cemplete thi questicn by eering year an in the t belew Pr a fld nem alery wksheet tho r Aecer Innovative Tech Inc. T) has been using the percentage of credit sales method to estimate bad debts. Duing November, ITI sold services on account for $140,000 and estimated that 12 of 1 percent of those sales woud be uncolectible. Required 1. Prepare the November adjusting entry for bad debts 2. Starting in December, ITI swched to using the aging method. At its December 31 year end, total Accounts Recelveble is $06.800. aged es follows 1-30 deys oid, $73,000, (2) 31-90 deys oid, $10.000, and (3 more thean 90 deys old, $3,800o. The average rate of uncollectbity for each ege group is estimated to be 10 percent, (2) 20 percent, and ()40 percent, respectively Prepere a schedule to estimate an appropriste year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of year adjusting entry is made, the Alowance for Doubtful Accounts has a $1,500 credit balance et December 31. Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet Complete this question by entering your answers in the tabs below. RequiredRequired 2 Required 3qures 4 Prepare the November adjusting entry for bad debes. (no entry is required for a transaction/event, select "No Journal Entry Required" in the first acceunt feid) w Journal entry worksheet cot this qution by tering pour anwe in the tabes belicw ur d d3 cn th ang eoy tor bud aa asor owamber 30 Sating in December, wche t using the aging hod At is becemoer 30 erend l Accunts eceable 430, age afw )-30 ys aid, a23,300, ca 31-0 da o, cea, and w the se cave ld, 43.0 The avaage rae sh age e t 3 o e, 12 30 p and(3)3 plyPerewhe t ere an prie yearend bee br the e or o Dei Crd Te Noveber 30 A Cied Unecte N y A y aAt Record entry view general joural Cemplete thi questicn by eering year an in the t belew Pr a fld nem alery wksheet tho r Aecer
