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Instructions Cowen's, a large department store located in a metropolitan area has been experiencing difficulty in estimating its bad debts. The company has decided to

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Instructions Cowen's, a large department store located in a metropolitan area has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule brits outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis disclose the following information Balance Age of Receivable Estimated Percentage Uncollectible $198.000 Under 30 days 0.8% 111.000 30-60 days 20% 73,000 61-120 days 5.0% 41,000 121-240 days 20.0% 35.0% 25,000 241-360 days 19,000 Over 360 days 60.0% 5465.000 25,000 241-360 days 35.0% Over 360 days 60.0% 19,000 $465,000 Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is: A. O B. $3,200 (debit) C. $2,500 (credit) GENERAL JOURNAL ACCOUNT TITLE record Cowan's estimated uncollectibles, assuming the balance in Allowance for Doubt Accounts prior to adjustment is a $1,200 dobil Prepare the jour ney on June 30 Aduftional struction GENERAL JOURNAL POST Prepare the journal entry on June 30 to record Cowan's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is a $2.500 credit Ad alinstruction Prepare the journal entry on June 30 to record Cowen) estimated uncollecties, assuming the balance in Allowance for Doubt Accounts prior to adjustment is a $2.500 credit Additional instruction PWGE9 GENERAL JOURNAL ACCOUNT TITLE General Journal Analysis Doubtful Accounts prior to adjust Ad Use the Aging analysis to compute the estimated amount of uncollectible receivables. The estimated amount uncollectible based on the data provided is s PAGE 9

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