Problem One: Blocker Company estimates its uncollectible accounts based on an analysis of receivables. On December 31, a Junior accountant prepared the following aging schedule for the company's $88,000 in outstanding receivables. Estimated Uncollectible Accounts Age Interval Amount X Not due 57,650 2% 1-30 days past due 14,220 4% 31-60 days past due 7,930 20% 61-90 days past due 5,000 30% Over 90 days past due 2.200 50% $88,000 The Allowance for Uncollectible Accounts currently has a $310 debit balance. 1. Prepare the adjusting entry to record the company's estimate of uncollectible accounts. Date SE E NI CF Account DR CR 2. Prepare the journal entry to write off the following accounts: T. Donaldson $ 750 J.Kyle. 470 D. Mize. 1,000 CF NI Account CR DR Date L SE 3. Prepare the journal entry to record receipt of the $470 owed by J. Kyle. Date A SE R E NI CR CF DR Account 4. Write an answer to the following question: What clrcumstances would cause the Allowance for doubtful Accounts to have a debit balance prior to adjustment? Problem Two: A company has the following balances on December 31, Year 1, before any adjustment: Accounts Receivable - $47,000; Allowance for Uncollectible Accounts - $1,100 (credit). On December 31, Year 1, the company estimates uncollectible accounts to be 15% of accounts receivable. Required: 1. Record the adjusting entry for uncollectible accounts on December 31, Year 1. DR SE CR CF R Account Date NI 2. Determine the amount at which bad debt expense is reported in the income statement and the allowance for uncollectible accounts is reported In the balance sheet. Bad Debt Expense Allowance for Uncollectible Accounts 3. Calculate net accounts receivable. Net Accounts Receivable Problem Three: A company reports the following amounts at the end of Year 1 (before adjustment). Credit Sales for Year 1 Accounts Receivable, December 31, Year 1 Allowance for Uncollectible Accounts, December 31, Year 1 $254,000 49,000 1,100 (Credit) 1. Record the adjusting entry for uncollectible accounts using the percentage-of-receivables method. The company estimates 12% of receivables will not be collected Date SE E R NI CF DR CR Account 2. Record the adjusting entry for uncollectible accounts using the percentage-of-credit-sales method. The company estimates 3% of credit sales will not be collected. E NI CF DR Account R CR L Date SE