reen Rec x 3615671 X M Inbox (1.02 x www.bobb x V eTextbooks x VitalSource x CW Wi-Fienha x B The Land o x H My Grades X MindTap - X CH 8 HW x C mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt=4288474&cmid=239671 isinessCourse Return to course My Subscriptions edit Losses Based on Accounts Receivable At December 31, Rinehart Company had a balance of $311,800 in its Accounts Receivable account and a credit balance of $2,800 in the Allowance for Doubtfu counts account. The accounts receivable T-account consisted of $317,600 in debit balances and $5,800 in credit balances. The company aged its accounts as follows: urrent $264.000 760 days past due 30.000 61-180 days past due 13.200 Over 180 days past due 10.400 $317,600 In the past, the company has experienced credit losses as follows: 2% of current balances, 6% of balances 0-60 days past due, 15% of balances 61-180 days past due, and 30% of balances over six months past The company bases its allowance for doubtful accounts on an aging analysis of accounts receivable. Required a. Prepare the adjusting entry to record the allowance for doubtful accounts for the year. b. Show how Accounts Receivable (including the credit balances) and the Allowance for Doubtful Accounts would appear on the December 31 balance sheet. a. General Journal Date Description Debit Credit Dec.31 Bad Debts Expense vs 3,000 x S Allowance for Doubtful Accounts OV 3,000 x To record allowance for credit losses. b. Current Assets: Accounts Receivable 311,800 x Less: Allowance for Doubtful Accounts 2.800 x 309,000 x Current Liabilities: Customers' Overpayments 10 x Check Type here to search O P 1:39 PM 11/6/202