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Q2. The following represents selected information taken from a company's aging schedule to estimate uncollectible accounts receivable at year-end. (A) Draw the similar table and
Q2. The following represents selected information taken from a company's aging schedule to estimate uncollectible accounts receivable at year-end. (A) Draw the similar table and calculate the total estimated bad debts based on the above information. (B) Prepare the year-end adjusting journal entry to record the bad debts using the allowance method and the aged uncollectible accounts receivable determined in (A). Assume the unadjusted balance in the Allowance for Doubtful Accounts account is a Rs 14,000 credit. (C) Of the above accounts, Rs 5200 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible accounts. (D) The company subsequently collects Rs2,400 on a specific account that had previously been determined to be uncollectible in (C). Prepare the journal entry(ies) necessary to restore the account and record the cash. [15 marks]
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