Tableau DA $9-3($Static$)$: Mini$-$Case, Aging of receivables method and adjusting entries LO P$3$

The manager asks you to assist her with the data analytics on bad debts expense at year$-$end. To do this, you access the following

Tableau Dashboard for your Cash: $$732,000$ Accounts Recieveable: $$1,220,000$ Inventory $$1,708,0$ Supplies: $$476,000$

Accounts Receivable by Age Over $90$ Day: $12,00061-90$ Day: $$38,0001-30$ Day: $$254,000$ Not Yet Due: $$830,000$

Percent Uncollectible by Age Not Over $90$ Day: $68\%61-90$ Day:$33\%31-60$ Day:$7\%1-30$ Day:$3\%$ Not Yet Due: $2\%$

Makeup of Total Sales Credit Sales: $$7,150,000$ Cash Sales: $$2,250,000$

Percent Uncollectible by Accounts Credit: $1\%$ Accounts Receiveable: $5\%$

Make the adjusting entry to record Bad Debts Expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a

$$5,000$ credit and use of the aging of accounts receivables method.

Journal entry worksheet

$1$

Record the estimated bad debts.

Note: Enter debits before credits. Make the adjusting entry to record Bad Debts Expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is an

$$8,000$ debit and use of the aging of accounts receivables method.

Journal entry worksheet

$1$

Record the estimated bad debts.

Note: Enter debits before credits. Based on further analysis, assume we find that the percentages in the graphic "Percent Uncollectible by Age" are too high. When alerting

the manager, she responds that this is intentional. What are the income statement impacts from the overstated percentages?

What are the income statement impacts from the overstated percentages?