Problem $8-4$B Problem $8-4$B Problem $8-4$B Problem $8-4$B

REQUIRED, PART $1$: REQUIRED, PART $2$: REQUIRED, PART $3$:

On December $31,2023,$ Fresh Veggie Company's Allowance for Doubtful Accounts had an unadjusted debit balance of $$9,800.$ The accountant for Fresh has prepared a schedule of the December $31,2023,$ accounts receivable by age and, on the basis of past experience, has estimated the percentage of receivables in each age category that will become uncollectible. This information is summarized as follows: Calculate the amount that should appear in the December $31,2023,$ balance sheet as the Allowance for Doubtful Accounts. Prepare the journal entry to record bad debt expense for $2023$ Review and answer the analysis component.

Date Account Titles and Explanation Debit Credit On June $30,2021,$ Fresh Veggie's Company concluded that a customer$$s $$9,200$ receivable $($created in $2020)$ was uncollectible and that the account should be written off. What effect will this action have on the company's $2021$ profit? Explain your answer.

Calculation of the required balance of the allowance: Dec. $31$

A B $($A x B$)$

December $31,2020$ Accounts Receivable Age of Accounts Receivable Expected Percentage Uncollectible Not due $($under $30$ days$)$ $$-0-0\mathrm{.}00\%$ $$-0-$

$1$ to $30$ days past due $-0-0\mathrm{.}00\%-0-($Place your answer on the sheet below. If you click near the middle of the sheet, a blinking cursor will appear in the upper left corner of the sheet. If you click on the curled portion of the sheet in the lower right corner, the sheet will be selected so that you can increase or decrease its size.$)$

$ $1,510,000$ Not due $($under $30$ days$)1\mathrm{.}25\%31$ to $60$ days past due $-0-0\mathrm{.}00\%-0-$ To record bad debt expense for $2020$

$715,0001$ to $30$ days past due $2\mathrm{.}00\%61$ to $90$ days past due $-0-0\mathrm{.}00\%-0-$

$152,00031$ to $60$ days past due $6\mathrm{.}50\%$ Over $90$ days past due $-0-0\mathrm{.}00\%-0-$

$97,00061$ to $90$ days past due $33\mathrm{.}00\%$ Total $$-0-$ credit

$25,000$ Over $90$ days past due $50\mathrm{.}00\%$

REQUIRED:

$"(1)$ Calculate the amount that should appear in the December $31,2023,$ balance sheet as the Allowance for Doubtful Accounts.

$(2)$ Prepare the journal entry to record bad debt expense for $2023$

$(3)$ Review and answer the analysis component."