the second journal enrty is an adjusting journal entry. thank you for your help, have a great rest of the day!
Innovative Tech Inc. (TI) has been using the percentage of credit sales method to estimate bad debts. During November. IT sold services on account for $110,000 and estimated that 12 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $92.300, aged as follows: (1)1-30 days old, $78,000 (2) 31-90 days old, $10.000. and (3) more than 90 days old. $4,300. The average rate of uncollectibility for each age group is estimated to be (010 percent. 12. 20 percent, and (3) 40 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.750 credit balance at December 31. Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts recevable should be shown on the December 31 balance sheet Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required In the first account field.) View Journal entry worksheet Record the adjusting entry for bad debts as of November 30. Credit services on account for $110.00 and estimated that 1.2 or 1 percent or those sales would be unCollecudie. Required: 1. Prepare the November adjusting entry for bad debts. 2 Starting in December, I switched to using the aging method. At its December 31 year-end, total Accounts Receivable aged as follows: (1) 1-30 days old, $78,000. (2) 31-90 days old, $10,000, and (3) more than 90 days old, $4,300. The av uncollecubility for each age group is estimated to be (1) 10 percent. (2) 20 percent, and (3) 40 percent respectively. Pres schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.750 credit balance at Dec Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet Complete this question by entering your answers in the tabs below. Required Required 2 Requires Required 4 Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $92,300, aged as follows: (1) 1-30 days old, 578,000; (2) 31-90 days old, 310.000; and (3) more than 90 days old, $4,300. The average rate of uncollectiblity for each age group is estimated to be (1) 10 percent. (2) 20 percent, and (3) 40 percent respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 21-90 90 10 000 Acoounts Receivable Estimates Uncollectibles Estimates Uncollectibles 78 000 101 Required 1 R ed 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Before the end of year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.750 credit balance at December 31. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction et Journal entry worksheet Record the adjusting entry for bad debts as of December 31 t enter debits bene credits General Journal Debit Credit December 31 Required: 1. Prepare the November adjusting entry for bad debts. 2 Starting in December, ITI switched to using the aging method. At Its December 31 year-end, total Accounts Receivable is $92.300. aged as follows: (1) 130 days old, $78,000:12 31-90 days old, $10,000, and (3) more than 90 days old. $4,300. The average rate of uncollectibility for each age group is estimated to be (1) 10 percent, (2 20 percent, and (3) 40 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1.750 credit balance at December 31 Prepare the December 31 adjusting entry 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet, Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required: Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Inc. (II) Balance Sheet (partial) At December 31 Required 3
