The following was taken from the records of Smith Company in the year ending December 31, 2014. Journalize the following transactions in an Excel spreadsheet for year-end 2014 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $18,000 on January 1, 2014.

Assignment Template attached below

Label the events below as journal entries #1 to #4, along with the dates of the entries:

1. February 20, 2014: Wrote off Jones account: $7,250.
2. May 20, 2014: Received $4,050 as partial payment on the $8,000 account receivable due from Garcia.The remaining amount is believed to be uncollectible and is written off.
3. August 10, 2014: Received $7,250 from Jones on the account written off on February 20, 2014.
4. September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $4,400; Mulaka: $2,210; Quan: $1,375.

December 31, 2014: Smith Company prepared the following aging schedule for it accounts receivables:

• $160,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of not being paid.
• $40,000 of A/R are 31-60 days late: 10% probability of not being paid.
• $18,000 of A/R are 61-90 days late: 20% probability of not being paid.
• $1,500 of A/R are later than 90 days late: 50% probability of not being paid.

Instructions:

Submit the following items in an Excel spreadsheet, labeling each as 1, 2, 3, and 4:

1. The four journal entries (1 to 4 above) with a one-sentence description for each
2. The allowance for doubtful accounts T-account
3. The journal entry to record bad debt expense
4. The balance sheet presentation of net realizable value, including gross accounts receivables of $219,500

Option #1- Mod 6- Receivables Smith Company- December 31, 2014 Students Template Question 1: Jo Date Account Title 1 1-Feb Allowance for doutful accounts Jones- Accounts receivable 2 2-May Cash Allowance for doutful accounts Garcia- Accounts receivable 3 10-Aug Jones- Accounts receivable Allowance for doutful accounts Cash Jones- Accounts receivable 4 15-Sep Allowance for doutful accounts Tang- Accounts receivable Mulaka- Accounts receivable Quan- Accounts receivable Debit December 31,14-Aging of the Accounts Receivables Allowance Days late Amount %Not Paid Ending Balance 0 to 30 31-60 61-90 90days+ TOTAL Question 2: Dates T-Account Allowanace Debit Credit BB 1-Feb 20-May 10-Aug Credit 15-Sep Bad Debt Expense= EB= Aging Result Question 3: Date Account Title 31-Dec Bad Debt Expense Allowance for doutful accounts Question 4: Balance Sheet Presentaion Gross Accounts Receivables Ending Blance of Allowance for Doubtbul Accounts Net Realizable Balance