The A/R department had the following information on December 31, 2009:

Total Credit Sales $400,000

Balance of allowance for doubtful accounts (950.00)

Bad debt asa percentage of credit sales 0.50%

J Company- 34 Days Past Due - Amount $5,000

H Company- 74 Days Past Due - Amount $950

L Company- 18 Days Past Due - Amount $32,000

T Company - 22 Days Past Due - Amount $4,350

F Company - 61 Days Past Due - Amount $2,000

B Company - 145 Days Past Due - Amount $1,750

Age Class- PercentageUncollectable

0-30 - 2%

30-60 - 5%

60-90 - 12%

90-120-20%

120+ - 75%

1. Make an aging of receivable report and determine the allowance for doubtful accounts.
2. Determine the allowance for doubtful accounts based on the percentage of sales method (and using all the information provided by the A/R department).
3. Illustrate the effects on the accounts and financial statements using both methods (be sure to illustrate the effects on ALL financial statements i.e. balance sheet, statement of cash flows &/or income statement).
4. Illustrate the effects on the accountsand all financialstatements assuming the company wrote off the balance of T Company on April 3, 2010.
5. Illustrate the effects on the accounts andall financial statements assuming that TCompany paid off it's account on May 22, 2010.