QUESTION #3 At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of 11,420. Instructions: Calculate the total estimated bad debts based on the information below. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the current balance in Allowance for Doubtful Accounts is a $3,650 debit. Of the AR accounts below, $7,500 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. The company collects $4,000 subsequent on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entries necessary to restore the account and record the cash collection.
COMPANY INFO: Mi Tierra Ltd. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of accounts receivable at year-end.
Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120
Accounts Receivable		$199,500	$70,000	$50,000	$41,500		$24,000		$14,000
Estimated % Uncollectible			1.5%	3%	6%		8%		12%
(a) Compute Est. Bad Debts		$	$	$	$		$		$
(b) GENERAL JOURNAL
Dec	Account Title					Debit		Credit
(c)
Dec	Account Title					Debit		Credit
(d)
Dec	Account Title					Debit		Credit