P 8.4

P8.4A (LO 2) Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end. Journalize transactions related to bad debts. Worksheet Data Review View Home Insert Page Layout Formulas D Total 200,000 NOUAWN- 0-30 77,000 1% Number of Days Outstanding 31-60 61-90 91-120 46,000 39,000 23,000 4% 5% 8% Accounts receivable % uncollectible Estimated bad debts Over 120 15,000 20% Instructions a. Calculate the total estimated bad debts based on the above information. a. Tot. est. bad debts b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is an $8,000 debit. c. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection