Istimating and Recording Bad Debt Estimates and Write-offs Reporting of Accounts Receivable Sun Systems Inc. had the following information 1. Sales revenue for 2020, 5180,000, of which one sath was on account 2. Allowance for doubtful accounts, balance December 31, 2019: 5900 credit 3. On December 30, 2020, the company determines that a specific customers account is uncollectible and writes off the account of 1.050 4. Accounts receivabile, balance December 31, 2020 (after write-offs during the year, 517.000 5. Ang schedule at December 31, 2020 showing the following breakdown of total accounts receivable Status Amount Not past $10.000 Pastor 1.60 days 32.000 Pastove days 1000 Required a. Prepare the December 30, 2020 entry to write off the uncollectible accounts Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad debt loss rates. Note: Treat each of the following scenarios separately, they are independent of one another 1.Bad debt expense is based on credit sales, 1.5 (Hint: see p.8-19. Alternative to estimating Net Realizable Value) The Allowance for Doubtful accounts is based on total receivables at year-end 2.5% The Allowance for Doubtful accounts is based on ang schedule not past duO.SK past due 1-60 days, and paste over 60 days Required a. Prepare the December 30, 2020 entry to write of the uncollectible accounts. b. Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad debt loss rates Note: Treat each of the following scenarios separately, they are independent of one another Bad debt expense is based on credit sales, 15%.chin See 3.8-19. Alternative to estimating Net Realizable Value) The Allowance for Doubtful accounts is based on total recevables at year end 25 lk. The Allowance for Doubtful accounts is based on aging schedulenot past due, os past dat 1-60 days, 18. and part de over to days. Account Nam CE Date Dec 02021 D. Note: The independent of one another Dr. CF. Date Dec 31, 2021 Cash Account aceste Allowance for our Interest Receivable wy nory-Estimated Rune Refund by Sales Revenue Sales Returns Sales Discount Sales Ford Cost of Goods Sold Bad Det NA Date Dr. CE Dec 2001 UL Du CE Acc Name Date Dec 31, 2000 Required a. Prepare the December 30, 2020 entry to write off the uncollectible accounts. b. Prepare the 2020 adjusting entry to record bad debt expense for each of the following separate assumptions concerning expected bad debt loss rates. Note: Treat eac following scenarios separately, they are independent of one another 1. Bad debt expense is based on credit sales, 1.5%. (Hint: See p. 8-19. Alternative to Estimating Net Realizable Value) II. The Allowance for Doubtful accounts is based on total receivables at year-end, 2.5. The Allowance for Doubtful accounts is based on aging schedule: not past due, 0.5%; past due 1-60 days, 14, and past due over 60 days, 8% Dr. CE Account Name Date Dec 30, 2020 b. Note: Treat each scenario separately, they are independent of one another Dr. CE Account Name . Date Dec 31, 2020 il Dr. Cr. Account Name Date Dec 31, 2020 Dr. CE Account Name Date Dec 31, 2020
