Joumalize transactions related to bad debts. P9-4B The following represents selected information taken from a company's aging schedule to estimate uncollectible accounts receivable at year-end. (LO 1, 2) Worksheet.xis Home InsertPage Layout FormulasData ll Review View P18 Number of Days Outstanding Total0-3031-60 61-90 91-120 Over 120 4 Accounts receivable $375,000 $220,000 $90,000 $40,000 $10,000 $15,000 5 | % uncollectible 6 Estimated bad debts 1% 4% 5% 8% 20% Instructions (a) Calculate the total estimated bad debts based on the above information. (b) Prepare the year-end adjusting journakDntry to record the bad debts using the allow- (a) Tot. est bad debts $11,600 ance method and the aged uncollectible accounts receivable determined in (a). Assume (c) Of the above accounts, $1,600 is determined to be specifically uncollectible. Prepare (d) The company subsequently collects $700 on a specific account that had previously (e) Explain how establishing an allowance account satisfies the expense recognition the current balance in Allowance for Doubtful Accounts is a $3,000 credit. the journal entry to write off the uncollectible accounts. been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. principle