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P8-4A Journalize transactions related to bad debts (LO 2) Rigney Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year-end Worksheet.xls P18 Number of Days Outstanding Total 91-120 Over 120 23,000 15,000 8% 20% 1-90 4 Accounts receivable200,00077,000 46,000 39,000 5 % uncollectible 6 : Estimated bad debts 196 496 5% Instructions Calculate the total estimated bad debts based on the above information. 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 an $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. (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