Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please fixed the ones marked in red Required information Use the following information for the Exercises below. [The following information applies to the questions displayed

Please fixed the ones marked in red
image text in transcribed
image text in transcribed
Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.) Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 1 to 38 31 to 60 61 to 90 Accounts receivable $645,000 $411,000 $105,800 $51,000 $33,000 $45,000 Percent uncollectible 2 5% 7% Over 90 14 10% Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,500 credit c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,500 debit Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectibles 645,000 credit Reqs and > Destions displayed below.) Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Accounts receivable Percent uncollectible Total $645,800 $411,800 19 1 to 30 $105,000 28 31 to 60 61 to 90 $51,008 $33,00 5% 74 Over 90 $45,000 184 Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,500 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,500 debit. Complete this question by entering your answers in the tabs below. Req A Reg B and C Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,500 credit. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,500 debit. Show less Date General Journal Debit Credit Dec 31 Bad debts expense 13,500 Allowance for doubtful accounts 13,500 No 1 SS 2. Dec 31 Bad debts expense Allowance for doubtful accounts 2,500 X olo 2,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Accounting Principles In Islamic Finance

Authors: Samir Alamad

1st Edition

3030162982, 9783030162986

More Books

Students also viewed these Accounting questions