SHOW ME HOW EX 8-11 Estimating doubtful accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts Obj. 4 receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Percent Age Class Balance Uncollectible Not past due $ 892,000 1-30 days past due 285,000 31-60 days past due 101,000 8 61-90 days past due 63,000 16 91-180 days past due 43,100 50 Over 180 days past due 17,700 80 $1,401,800 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31. EX 8-12 Entry for uncollectible accounts Obj. 4 Using the data in Exercise 8-11, assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $5,140 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. SHOW ME NOW c$8,225 higher SHOW ME HOW EX 8-13 Entries for bad debt expense under the direct write-off and allowance methods Obj. 5 The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, 68,450. May 15. Received $500 as partial payment on the 57,100 account of Dan Pyle. Wrote off the remaining balance as uncollectible July 27. Received $8.450 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt Dec 31 Wrote off the following accounts as uncollectible (record as one journal entry Paul Chapman 52,225 Duane DeRosa 3.550 Teresa Galloway Ernie Klatt 1,275 Marty Richey 1,690 31. If necessary, record the year-end adjusting entry for uncollectible accounts. a. Journalize the transactions under the direct write-off method. b. Journalize the transactions under the allowance method. Shipway Company uses the per cent of credit sales method of estimating uncollectible accounts expense. Based on past 4.770