Question $2$

Orchid Industries uses the Aging of Accounts Receivable method to estimate uncollectible debts for the year. Below is

the Aged Accounts Receivable report for Orchid at December $31{?}^{st},$ along with the estimated uncollectible percentage for

each aging category.

a$.$ Calculate the estimated balance of the Allowance for Doubtful Accounts at December $31$ st$?$

b$.$ Record the required journal at year$-$end to record Bad Debt Expense if the Allowance for Doubtful Accounts had

a CREDIT balance before adjustments of $$1,500.($A t$-$account might be helpful$)$

c$.$ Record the required journal at year$-$end to record Bad Debt Expense if the Allowance for Doubtful Accounts had

a DEBIT balance before adjustments of $$600.($A t$-$account might be helpful$)$

d$.$ In the following year, Orchid decided to write$-$off a customer account. Tulip Inc's invoice for $$250$ was deemed

to be uncollectible. Record the journal required to write$-$off Tulip's account.

e$.$ Three months after writing off Tulip's invoice, Orchid surprisingly receive a cheque for the full amount of the

invoice $($$$250).$ Record the journal entries to reinstate the receivable and collect the payment.