Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end.

Bb Upload As X & Midterm R X 5 978111887 x Mail - kevi X Naruto Sh x |Mail - Kev X YouTube X https://twi x Match Det x YouTube X Course He X + - - C D @ File | /Users/admin/Downloads/Accounting_Principles_12th_Edition_by_Je%20(1).pdf G S RA 9781118875056 459 / 1295 P9-4A Rigney Inc. uses the allowance method to estimate uncollectible accounts receiv- Journalize transactions able. The company produced the following aging of the accounts receivable at year-end. related to bad debts. (LO 2) Worksheet.xLs Home Insert Page Layout Formulas Data Review P18 fx A B C D E F G Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 JOUAWN- Accounts receivable 200,000 77,000 46,000 39,000 23,000 15,000 % uncollectible 1% 4% 5% 8% 20% Estimated bad debts Instructions (a) Calculate the total estimated bad debts based on the above information. (a) Tot. est. bad debts $9,400 (b) 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 $8,000 debit. (c) Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary to restore the account and record the cash collection. 436 9 Accounting for Receivables (e) Comment on how your answers to (a)-(d) would change if Rigney Inc. used 4% of + total accounts receivable rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? Journalize entries to record P9-5A At December 31, 2017, the trial balance of Darby Company contained the following