Q.1. Westport Manufacturing Company uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five groupings: Total Not Yet Due 1-30 31-60 61-90 Over 90 Days Past Days Past Days Past Days Past Due Due Due Due $110,000 $50,000 $750,000 $500,000 $30,000 $60,000 Required: a. Compute the estimated amount of uncollectible accounts based on the classification by age groups. The following percentages of each age group are estimated to be uncollectible: Not yet due, 1%; 1-30 days, 3%;31-60 days, 10%;61-90 days, 20%; over 90 days, 50%. b. Prepare the journal entry to bring the Allowance for Doubtful Accounts up to its required balance. Prior to making this adjustment, the account has a credit balance of $4,700. C. Assume that on January 18 of the following year, the Company learnt that an accounts receivable that had originated on August 1 in the amount of $1,600 was worthless because of the bankruptcy of the client, May Flower, Prepare the journal entry required on January 18 to write off this account. d. The company is considering the adoption of a policy whereby clients whose outstanding accounts become more than 60 days past due will be required to sign an interest-bearing note for the full amount of their outstanding balance. What advantages would such a policy offer