4 At December 31, 20X0, Oettinger Corporation, a premium kitchen cabinetmaker for the home remodeling industry, reported the following accounts receivable information on its year-end balance sheet: Gross accounts receivable Less: Allowance for credit losses Accounts receivable (net) $850,000 (25,000) $825,000 20 points eBook During 20X1, the company had credit sales of $8,200,000 of which it collected $7,975,000. Oettinger employs the sales revenue approach to estimate its bad debt provisions and continuing to use the same 1% used in previous years, made the normal adjustment at the end of 20X1. References Although 20X1 started off well, the industry experienced a slowdown in the last four months of the year, and cash collections consequently dropped off substantially. Moreover, a major customer, which owed Oettinger $85,000, unexpectedly filed for bankruptcy and went out of business during November, at which time its account was written off. Oettinger's controller is concerned that some customers are experiencing cash flow problems and that the company's allowance for credit losses is too low. As a result, she prepared the following schedule: % of Accounts Receivable Balance 20% 40 35 3 2 Number of Days Past Due 0-30 31-60 61-90 91-120 Over 120 Estimated % Collectible 98% 95 85 75 50 4 Required: 20 points 1-a. Determine Oettinger's accounts receivable balance at December 31, 20X1. 1-b. Prepare a journal entry for each transaction affecting the accounts receivable balance for 20X1. 2-a. Prepare an aging analysis. 2-b. Compute the required balance in the Allowance for credit losses at December 31, 20X1. 3. Prepare any other required journal entries affecting the Allowance for credit losses for the year ended December 31, 20X1. (Do not duplicate any entries from requirement 1.) 4. Show Oettinger's balance sheet presentation of accounts receivable at December 31, 20X1. eBook References Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Req 2A Req 2B Reg 3 Reg 4 Determine Oettinger's accounts receivable balance at December 31, 20X1. Accounts receivable (Reg 1A Req 1B >