Question 54]

All help is appreciated greatly

Journal entry worksheet Noenter debits before credits General Journal Debit Credit Date NOV 30, 2014 Innovations Corp (IC) uses the percentage of credit sales method to estimate bad debts Record the November 2014 adjusting entry for bad debts. each month and then uses the aging method at year-end. During November 2014, IC sold services on account for $99,000 and estimated that of one percent of those sales would be uncollectable. At its December 31 year-end, total Accounts Receivable is $93,500, aged as follows: (01 to 30 days old, $77,500 (2) 31 to 90 days old, $11.400; and 3) more than 90 days old, 54,600. Experience has shown that for each age group, the average rate of uncollectability is (1) 1 percent, (2) 15 percent, and (3) 40 percent, respectively. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1840 credit balance at December 31, 2014 Journal entry worksheet 2. Prepare a schedule to estimate an appropriate year end balance for the lowance for Doubtful Accounts Record the December 2014 year-end adjusting entry for bad debts. Estimated Amount Uncollectible Note: Enter debits before credits Date Dec 31, 2014 General Journal Debut Credit Aged Accounts Receivable 1-30 days 31-90 days More than 30 days Estrand balance in allowance for doubt accounts Show how the various accounts related to accounts receivable should be shown on the December 31, 2014, balance sheet (Amounts to be deducted should be indicated with minus sign.) Partial Balance sheet at December 31, 2014 Accounts receivable, net of allowance