note: (over 90 days past due is written off)

35,000-10,000=25,000; 25,000 * 40%=10,000

Question (2) 12 Marks: Near the end of the year 2021 You have been assigned a Financial Consultant Position for PETRA Company. Your first Task was to evaluate the Net Realizable cash value of PETRA Accounts Receivable. PETRA Company used to assign a 5% of its Credit Sales as Bad debt expense. Find Allowance for Doubtful Accounts & Bad Debt Expense using all applicable accounting methods, Combined with the Adjusting Entries for 2021. [8Marks] Final recommendation for the best method to apply with brief justification is expected via Official Report. [4Marks] Good LUCK with your New Position Description $ Accounts Receivable Balance31/12/2020 275000 Allowance for Doubtful Accounts Balance 31/12/2020(Credit) 4800 Credit Sales During 2021 345000 Collection During 2021 135000 Written off Accounts 10000 An aging of the accounts receivable for the Year2021 revealed the following: Description Amount Estimated Percentage of Uncollectible Total Current Accounts 200000 1% 1-30 days past due 150,000 2% 31-60 days past due 80,000 3% 61-90 days past due 20,000 10% Over 90 days past due 35,000 40% Total The Written off Accounts has been written off after Aging Table has been accomplished, & accounts were chosen among the (Over 90 days Past due) class. Total The Written off Accounts has been written off after Aging Table has been accomplished, & accounts were chosen among the (Over 90 days Past due) class. Accounts Receivable Aging Allowance for Doubtful Accounts Bad Debit exp. EB Accounts Receivable AR Allowance for Doubtful Accounts AR Net Book value 5% %Sales Allowance for Doubtful Accounts Bad Debit exp. EB Accounts Receivable AR Allowance for Doubtful Accounts AR Net Book value || Adjusting Entries Date Account Titles and Explanation Debit Credit