MGM Supplies Inc. sells exercise equipment. MGM notes that at December 21, 20xx, it has the following aging schedule of Accounts Receivable. 20XX sales were $3,000,000. The amount in the allowance account at 12/31/XX is a credit balance of $23,000, prior to the review.

Total Current 1-30 31-60 61-90 Over 90

Accounts Receivable $625,000 300,000 150,000 100,000 50,000 25,000

% uncollectible 1% 5% 10% 20% 50%

A. Net receivables using aging method (after adjustment)

B. Bad debt expense to be recorded using aging method

C. What would the bad debt expense be using the sales method instead of aging method, if the expected uncollectible rate was 2.0%?

D. Net receivable using the sales method (after adjustment)

E. MGM wrote off a $10,000 receivable on 12/23/XX. Help me record the journal entry for the write-off.

F. On January 15, 20XY, MGM collected cash for a $15,000 receivable previously written off. Help me record the appropriate entries.