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nt Exercise 7-8 Percent of receivables method the following requirements. Refer to the information in Exercise 7-7 to complete a. Estimate the balance of the

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nt Exercise 7-8 Percent of receivables method the following requirements. Refer to the information in Exercise 7-7 to complete a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. ap b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit. Post. Ref. Credit Debit Accounts and Explanations Date Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000 debit. Post. Credit Debit Ref. Accounts and Explanations Date judgn ty De In-class activity # Evercise 7-7 Aging of receivables method Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due 1 to 30 31 to 60 61 to 90 0ver 90 0 Total $18,000 $30,000 $570,000 $396,000 $90,000 $36,000 Accounts receivable 5% 7% 10% 2 % 1 % Percent uncollectible a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. ASsume the unadjusted balance in the Allowance for Doubtful Accounts is a $3,600 credit. Post Credit Debit Ref. Accounts and Explanations Date Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $100 debit. c. Post. Ref. Credit Debit Accounts and Explanations Date t, or confusion y, pressure, rationalization Cost-benefit principle-the costs gf inl

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