Perform the following exercises related to the different situations that exist with uncollectible accounts in a company. Evaluate the aging report.

1.Read the following scenario and make the accounts receivable cancellation entries.

Computadoras y Ms, a computer systems sales company, decided to cancel the account receivable (write off) of its client Tech Master for the balance of $ 52,000.

Jornalize the write-off input assuming the direct write-off method and the allowance method.

2.Perform the exercises in the following case paying attention to the instructions:

Music Express is a company that sells both car and home stereos.

Jornalize transactions using the direct write off method.

Journalizes transactions using the allowance method assuming the account's credit balance started at $ 28,000 on February 1 and the company uses the accounts receivable method analysis.

Selected Transactions from Music Express Records as of December 31:

April 10th. Account canceled (wrote off account) of Mario Guzmn for $ 6,400. Journalizes transactions using the allowance method assuming the account's credit balance started at $ 28,000 on February 1 and the company uses the accounts receivable method analysis.

June 12. A partial payment of $ 1,500 was received from Margarita Rodrguez's account from a $ 10,000 credit account. The remainder of the balance is written off as uncollectible.

20th of August. The amount of $ 6,400 was received from Mario Guzmn from the account that was canceled on April 10. Reinstall the account and record the cash receipt.

December 31st. Write off the following accounts as uncollectible (make a wage entry):

Ricardo Vega $ 3,200

Mariela Gutierrez 2,440

Manuel Rosario 6,200

Jorge Camacho 1,800

Linda Ocasio 5,330

3.If necessary, record year-end adjustment entries for doubtful accounts.

Prepare the aging schedule for the following accounts receivable:

Classification of aging (number of expiration days) Account balance as of December 31st Estimate of the percentage of the account that is

uncollectible

0-30 days $ 120,000 1%

31-60 days 80,100 2%

61-90 days 21,000 11%

91-120 days 9,000 23%

More than 120 days 15,300 65%

Total accounts receivable $ 245,400