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Maxo Industries, a distributor of electrical supplies, had outstanding accounts receivable on December 31, 2017, of $450,000 aged as follows: MID-CHAPTER DEMONSTRATION PROBLEM Recelasie by
Maxo Industries, a distributor of electrical supplies, had outstanding accounts receivable on December 31, 2017, of $450,000 aged as follows: MID-CHAPTER DEMONSTRATION PROBLEM Recelasie by Age 2022 Customer's Name Not Yet Due 1 to 30 Days Past Due Total 31 to 60 Days Past Due 61 to 90 Days Past Due Over 90 Days Past Due $ 90.000 $22.000 $26,000 Alton Group Fiibu's Electrical Service GDP Servicing Parkers Electrical Trenton Construction Xeon Doments Total Percetto uncollectible Estancollectible accounts 42.000 $ 90,000 48.000 162.000 80,000 15.000 55.000 5450,000 $120,000 80,000 $15.000 30.000 25.000 5230.000 $157.000 $22.000 $26.000 * 25% $15.000 X 60% Durin jar 2017. the company had sales or 83,720,000, or which 38.000 were cash sales. The Allow ane Doubtn Accounts had an unadjusted debit balance on December 31, 2017, or $3,050. Required Perusting entry to estimate incollectible accounts on December 31, 2017, under each of the to dependent assumption, and show the result balance sheet presentation for accounts Tahle $5,720,000, of which 338,000 were cash sales. The Allow- ance Doubtful Accounts had an unadjusted debit balance on December 31, 2017, of $3,050. Required Prepare the adjusting entry to estimate uncollectible accounts on December 31, 2017, under each of the following independent assumptions, and show the resulting balance sheet presentation for accounts receivable a Bad debts are estimated to be 0.0% of credit sales, Bad debts are estimated to be of outstanding accounts receivable. c. Bad debts are based on an aging analysis (part of the required information is provided in the schedule above
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