Question 2 Sage Hill Inc. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts on the below information. Total $422,000 0-30 $260,000 Number of Days Outstanding 31-60 61-90 91-120 591,000 $41,000 $18,000 Over 120 $12,000 Accounts Receivable % uncollectible 1% 1% 4% 4% 5% 8% 8% 11% 11% Estimated bad debts $ LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,800 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Of the above accounts, $4,600 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXT VIDEO: SIMILAR PROBLEM The company collects $4,600 subsequently on a specific account that had previously been determined to be uncollectible in part (C). Prepare the journal entry(ies) necessary to (1) restore the account and (2) record the cash collection. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit