Question $2$: Estimating and Recording Bad Debt Expense, Writing$-$off Accounts

$(14$ marks$)$

Nu owns a large factory that produces neon signs for stores and restaurants. The name of her

business is Bright Ideas. Nu calculates the amount of bad debt expense using the percentage

of receivables approach. Below is a partially completed aging schedule for Bright Ideas

receivables:

Additional information:

i$)$ The unadjusted balance in the Allowance for Doubtful Accounts at the end of $2023$

was a $$400$ credit balance.

Instructions:

a$)$ Complete the aging schedule. $(5$ marks$)$

b$)$ Using your calculation of estimated uncollectible accounts and the additional information

provided, prepare the journal entry to record bad debt expense. $(3$ marks$)$

c$)$ On February ${15}^{th},2024$ determined a customer who has a $$4,000$ account will not be

able to pay. Prepare the entry to record the write$-$off of this account. $(2$ marks$)$

d$)$ On March ${20}^{nh},2024,$ Nu received a $$4,000$ cheque in the mail to pay off the account that

we wrote off on February ${15}^n.$ Prepare the entries to record this event. $(4$ marks$)$