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Kingbird, Inc. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Calculate the
Kingbird, Inc. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.
Calculate the total estimated bad debts based on the information below.
Calculate the total estimated bad debts based on the information below. Number of Days Outstanding 61-90 Total 0-30 31-60 91-120 Over 120 $13,000 Accounts receivable $472,000 $308,000 $88,000 $45,000 $18,000 4% 5% 9% 11% % uncollectible 1% $ $ $ $ Estimated bad debts $ $ List of Accounts List of Accounts Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,300 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Of the above accounts, $4,600 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts The company collects $4,600 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit 1. 2. List of AccountsStep by Step Solution
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