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Innovative Tech Incorporated (ITi) has been using the percentage of credit sales method to estimate bad debts, During November, ITI sold services on account for

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Innovative Tech Incorporated (ITi) has been using the percentage of credit sales method to estimate bad debts, During November, ITI sold services on account for $120 , 000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the Novembor 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 $99 , 800 , aged as follows: (1) 1 to 30 days old, $83 , 000 ; (2) 31 to 90 days old, $12.000 ; and (3) more than 90 doys old, 54,800 . The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 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 Aliowance for Doubtful Accounts has a $2 , 000 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. Journal entry worksheet Record the adjusting entry for bad debts as of November 30 . Note: Enter debits before credits. Starting in December, ITI switched to using the aging method: At its December 31 year-end, total Accounts Recelvable is $99 , 800 , aged as follows: (1) 1 to 30 days old, $83 , 000 ; ( 2 ) 31 to 90 days old, $12 , 000 ; and (3) more than 90 days old, $4 , 800 . The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtiul Accounts. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $2 , 000 credit Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Jour account field.) Journal entry worksheet Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet

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