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Pachel Corporation reports the following information pertaining to its accounts receivable: Days Past Due Current 130 3160 6190 Over 90 $ 60,000 $ 40,000 $

Pachel Corporation reports the following information pertaining to its accounts receivable:

Days Past Due
Current 130 3160 6190 Over 90
$ 60,000 $ 40,000 $ 25,000 $ 12,000 $ 2,000

The company's credit department provided the following estimates regarding the percent of accounts expected to eventually be written off from each category listed above:

Current receivables outstanding 2 %
Receivables 130 days past due 4
Receivables 3160 days past due 16
Receivables 6190 days past due 40
Receivables over 90 days past due 90

The company uses a statement of financial position approach to estimate credit losses.

a.

Record the company's impairment loss of receivable, assuming it has a $1,400 credit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.)

General Journal Debit Credit
(Click to select)Accounts receivableMarketable securitiesCashGain on sale of investmentsAccounts payableLoss on sale of investmentsAllowance for ImpairmentImpairment loss of receivable
(Click to select)Loss on sale of investmentsAccounts receivableImpairment loss of receivableGain on sale of investmentsCashMarketable securitiesAccounts payableAllowance for Impairment

b.

Record the company's impairment loss of receivable, assuming it has a $1,600 debit balance in its Allowance for Impairment prior to making the necessary adjustment. (Omit the "$" sign in your response.)

General Journal Debit Credit
(Click to select)Marketable securitiesImpairment loss of receivableGain on sale of investmentsCashAccounts receivableLoss on sale of investmentsAllowance for ImpairmentAccounts payable
(Click to select)Allowance for ImpairmentAccounts payableGain on sale of investmentsAccounts receivableLoss on sale of investmentsImpairment loss of receivableCashMarketable securities

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