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Kiley Company had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2019, before the current year's provision for uncollectible accounts. An
Kiley Company had a $900 credit balance in Allowance for Doubtful Accounts at December 31, 2019, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $125,000 1% 1-30 days past due 12,000 3% 31-60 days past due 10,000 6% 61-90 days past due 5,000 12% Over 90 days past due 8.000 30% Total Accounts Receivable $160.000 (a) Prepare the adjusting entry on December 31, 2019, to recognize bad debts expense. (b) Assume the same facts as above except that the Allowance for Doubtful Accounts account had an $800 debit balance before the current year's provision for uncollectible accounts. Prepare the adjusting entry for the current year's provision for uncollectible accounts. (c) Assume that the company has a policy of providing for bad debts at the rate of 1% of net credit sales, that net credit sales for 2019 were $750,000, and that Allowance for Doubtful Accounts had a $650 credit balance before adjustment. Prepare the adjusting entry for the current year's provision for bad debts. B ALE GT 12pt) EE Paragraph
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