The Trust uses the allowance method of estimating bad debts expense. An aging schedule is prepared in order to calculate the balance in the allowance account.

The percentage uncollectible is calculated as follows:

1-30 Days	1%
31-60 Days	2%
61-90 Days	5%
91-365 Days	50%

*Always use cell references and formulas where appropriate to receive full credit.

Requirements

Calculate the number of days each receivable is outstanding

Complete the Schedule of Accounts Receivable.

Journalize the adjusting entry for Bad Debts Expense

*For all requirements, enter all amounts as positive values. Do not use a minus sign or parentheses for any values.

Excel Skills

Use the DAYS function to calculate the number of days between the invoice date and the date of the aging schedule.

Use the VLOOKUP function to provide the uncollectible accounts percentage based on the days outstanding

Use IF and AND functions to determine in which column the Accounts Receivable Schedule to place the amount for each customer

Format cells using number and percentage formats.

Use formulas to calculate totals

Use the Increase Indent button to indent the credit account for the journal entry

Use Absolute references to refer to a table in the VLOOKUP formula

Hint

See the Excel tips listed in the data file, starting on line 46. These tips include formulas that you need to use in your assignment.