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The following section was taken from FINLEY company's aging schedule that used to estimate uncollectable account receivable at the year ended December 31.2016. Number of
The following section was taken from FINLEY company's aging schedule that used to estimate uncollectable account receivable at the year ended December 31.2016. Number of Days Past Due Total 1-30 31-60 61-90 91-120 Over 120 Total Account Receivables 490,000 | 150.000 55,000 120,000 95,000 70,000 Uncollectible Percentage 1% 3% 7% 10% 12% Total Estimated Bad Debts ? ? ? ? 2 ? At December 31.2016, the unadjusted balance of Allowance for Doubtful Accounts is a credit of $10,450. Instruction: 1. Fill the blank in the table above, and calculate the total Estimated Bad Debts. 2. Journalize the adjusting entry for bad debts at December 31.2012 3. Journalize the following transactions occurred during the year 2017: * Feb 12, a $7,200 uncollectable accounts receivable was written off. * Mar25, a $3,100 is received from customer whose account was written off as uncollectable on February 12. I 4. If Company uses a percentage of sales method to estimated the uncollectable account receivable and estimate 3% of its sales $1,100,000 will be uncollectable and the unadjusted balance of allowance for doubtful account a December 31.2018 is credit for $3,000. Prepare the adjusted entry for bad debts at December 31.2018
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