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please solve the required questions PROBLEMS: 1. (12 points) Luke Company uses the aging approach to estimate uncollectible accounts receivable. Based upon recent collection history,
please solve the required questions
PROBLEMS: 1. (12 points) Luke Company uses the aging approach to estimate uncollectible accounts receivable. Based upon recent collection history, it has developed the following chart indicating percentages of uncollectible accounts receivable. 0-30 days 3% 31-60 days 8% 61-90 days 15% 91-120 days 40% more than 120 days 60% At December 31, 20x2, Luke prepared the following aging of its A/R balance. Age of Receivable Amount of Receivable 0-30 days 55,600,000 31-60 days 2,000,000 61-90 days 300,000 91-120 days 215.000 more than 120 days 10,000 Total $8.125.000 Additional information: Balance in accounts receivable at 1/1/20x2 $ 7,250,000 20x2 sales 85,600,000 Accounts written off during 20x2 356,000 Balance in allowance for doubtful accounts at 1/1/20x2 395,000 Required: a. Determine the amount of cash collected from accounts receivable during 20x2. (4 points) b. Determine the amount of bad debt expense for Luke's 20x2 I/S. (4 points) c. Prepare the adjusting entry that was made on 12/31/20x2 to recognize bad debts for 20x2. (2 points) d. Determine the net accounts receivable that will appear on Luke's 12/31/20x2 balance sheet. (2 points) Step by Step Solution
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