Part A. Complete the form below to age the accounts receivable. Provide the necessary end-of-year journal entry. You need to fill in the Totals row, the Dollar amount row, and prepare the journal entry.

Aging of accounts receivable (also called the balance sheet method):

Age1-30 days31-60 days61-90 daysOver 90 daysTotalsSmith70,000 Jones20,00020,000 White 200,000 Brown40,000 Green30,000 LeBlanc50,000 Pelletier 20,000 Totals 450,000Estimated uncollectible1%2%10%50% Dollar amount

The Allowance for doubtful accounts currently has a credit balance of $25,000.

Journal entry to adjust for bad debts:

Dec. 31

Part B. Percentage of sales method (also called the income statement method):

Net credit sales are $5,000,000

Estimated bad debts are .2% of net credit sales.

Calculate the estimate and enter your answer in the box below.

$

Journal entry to adjust for bad debts:

Dec. 31

Part C. In the following year, on January 30, we wrote off the account of Pelletier.

On March 18, Pelletier won the lottery and repaid us. Prepare the journal entries.

Jan. 30 Mar. 18 18