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Liston Maliki Jarntu Technologics is the fastest growing Indigenous based business located in Northern Manitoba For their fiscal year ended December 31, 2021, the
Liston Maliki Jarntu Technologics is the fastest growing Indigenous based business located in Northern Manitoba For their fiscal year ended December 31, 2021, the new business had $750,000 of sales, 75% on credit (on account). At year end, the unadjusted trial balance shown a debit balance of $800 in the Allowance for Doubtful Accounts The company uses the aging method to estimate the uncollectible accounts. The Accounts Receivable Aging Schedule was as follows on December 31, 2021: Days Outstanding Within 30 days 31-60 days >60 days P Outstanding Amounts % Estimated to be Uncollectible $216,000 $21,000 $7,000 3% 5% 12% On March 2, 2022 the credit manager authorizes a write off of the $4,000 balance owed by one of their customers, Yellowbird Streaming Limited. Required (a) Prepare the journal entry to record the estimated bad debts expense for 2021. Show all calculations to arrive at the amount of bad debts expense (3.5 points). (b) Show the statement of financial position presentation of accounts receivable on December 31, 2021 (1.5 points). (c) Prepare the journal entry to record the write-offs of accounts receivable on March 2, 2022 (1 point). (d) On June 30, 2022, Yellowbird Streaming Limited makes a $1,000 payment with an electronic fund transfer. Record this entry (2 points).
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