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 company.

Cash is $732,000 Accounts Receivable is $1,220,000 Inventory is $1,708,000 Supplies is $476,000

blue $12,000

Orange $38,000

Red: $36,000

Turqoise: $254,000

Green: $830,000

The lowest orange circle is 2%

2nd least is 3%

3rd least is 7%

4th least is 33%

The highest is 68%

Credit sales: $7,150,000

Cash Sales: $2,250,000

1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable. 3. Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts.

Makeup of Current Assets Cash Accounts Receivable Inventory Supplies Accounts Receivable by Age Over 90 days past due 61-90 days past due 31-60 days past due 1-30 days past due Not yet due $0 $200,000 $600,000 $800,000 $400,000 Accounts Receivable ($) Percent Uncollectible by Age Makeup of Total Sales Cash Sales Estimated Percent Uncollectible Credit Sales Percent Uncollectible by Accounts Credit Sales 1% Not yet due 1-30 days 31-60 days 61-90 days Over 90 days "Wakeuprot Yural sales Cash Sales Credit Sales Percent Uncollectible by Accounts Credit Sales 1% Accounts Receivable 5% Req 1 and 2 Req3 1. Estimate the balance of the Allowance for Doubtful Accounts using percent of sales method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for credit sales. 2. Estimate the balance of the Allowance for Doubtful Accounts using percent of receivables method. Assume a $0 existing balance in Allowance for Doubtful Accounts. Hint: Identify the percent of uncollectible for accounts receivable. Show less 1. Es Estimate the balance of the Allowance for Doubtful Accounts 2. Estimate the balance of the Allowance for Doubtful Accounts Req 1 and 2 Req3 Estimate the balance of the Allowance for Doubtful Accounts using aging of accounts receivable. Assume a $0 existing balance in Allowance for Doubtful Accounts. Accounts receivable Percent uncollectible (%) Not yet due: 1 to 30: 31 to 60: 161 to 90: Over 90: Estimated balance of allowance for uncollectibles