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Question 15 points: %AGING OF A/R Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method:
Question 15 points: %AGING OF A/R Use the AR Aging Table below to answer the questions related to adjusting ADA on the % Aging Method: 60 days Customer customer 1 customer 2 customer 3 Current 540.000 $60.000 580.000 30 days 520.000 550.000 90 days $10.000 56.000 120+ days Total SPOO 55.000 SO100 5114.000 $30.000 $4.000 $80.000 $10.000 $10.000 $5.000 $285.000 TOTALS $180,000 95 1% Uncollectable 390 89 10% 20% ***REQUIRED*** A) Show how the Balance Sheet Presentation (partial only) of AR and ADA based on the % Aging of AR Uncollectable Method and the amounts in the table above. Please show your calculations! B) Prepare the Journal Entry (in proper form) if the UNADJUSTED Balance of ADA (just before the needed adjustment) is a $3,000 CREDIT Balance C) Prepare the Journal Entry (in proper form) in the UNADJUSTED Balance of ADA (just before the needed adjustment) is a $2,000 DEBIT Balance Note: B&C are separate situations. You are to prepare the journal needed for each individually. T Accounts may be helpful, but not required
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