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Part 4: Accounting for Receivables. 16 points total The following information is provided about the outstanding Accounts Receivable of Agamotto Inc. They total $1,000,000. Of
Part 4: Accounting for Receivables. 16 points total The following information is provided about the outstanding Accounts Receivable of Agamotto Inc. They total $1,000,000. Of these, $400,000 have been outstanding 0-30 days, $500,000 have been outstanding 31-60 days, and $100,000 have been outstanding more than 60 days. Of the 0-30 day category, 6% are expected to be uncollectible, of the 31-60 day category, 15% are expected to be uncollectible, and of the over-60-day group, 25% are expected to be uncollectible. 1) Compute Agamotto Inc's Total Estimated Uncollectibles. Record in your Solution BOX this number: Total Estimated Uncollectibles, for example $11,111 For these Questions below, record in your Solution BOX: The 3 required journal entries 2) Now Agamotto Inc. needs to make the adjusting entry to record the uncollectibles. a) Make the journal entry on the assumption that the unadjusted balance in the Allowance for Uncollectible Accounts is a $100 credit balance. b) Now make the entry on the assumption that the unadjusted balance in the Allowance for Uncollectible Accounts is a $200 debit balance. 3) One of Agamotto Inc's customers, Dormammu, has gone bankrupt. She owes the firm $5,000 and will be unable to pay. Record this event
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