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The following information is available for Nancy's Best Corporation about the age of its receivables at December 31, its year end: Number of days outstanding.
The following information is available for Nancy's Best Corporation about the age of its receivables at December 31, its year end: Number of days outstanding. 0-30 31-60 61- 90 Over 90 Accounts Receivable $400,000 $240,000 $200,000 $80,000 Estimated percentage uncollectible 3% 5% 10% 15% Instructions a. Using the above aging schedule, determine the total estimated uncollectible accounts. b. Assuming that Allowance for Doubtful Accounts has an unadjusted credit balance of $16,000, prepare the journal entry to record bad debts expense at December 31. c. Assuming that Allowance for Doubtful Accounts has an unadjusted debit balance of $8,400, prepare the journal entry to record bad debts expense at December 31. (al) Estimated Uncollectible Accounts for the age group of 0-30 days are: $ (a2) Estimated Uncollectible Accounts for the age group of 31-60 days are: S (a3) Estimated Uncollectible Accounts for the age group of 61-90 days are: S (14) Estimated Uncollectible Accounts for the age group of 90 days plus are: S (a4) Estimated Uncollectible Accounts for the age group of 90 days plus are: S (a5) Total Estimated Uncollectible Accounts are: $ b. the journal entry to record bad debts expense at December 31 the first case (61) Account Name Debit: (62) Account Amount Debit: S (63) Account Name Credit: (b4) Account Amount Credit: $ c. the journal entry to record bad debts expense at December 31 the second case (cl) Account Name Debit: (c2) Account Amount Debit: $ (c3) Account Name Credit: (c4) Account Amount Credit: $
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