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Problem 8-9A Estimating bad debts LO3 excel CHECK FIGURE: a. Total estimated uncollectible accounts $13,638 The following information is available regarding the outstanding accounts receivable

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Problem 8-9A Estimating bad debts LO3 excel CHECK FIGURE: a. Total estimated uncollectible accounts $13,638 The following information is available regarding the outstanding accounts receivable of Mufu Contracting at September 30, 2020: July Month of Credit Sale Customer May June Aug. Sept. B. Axley $35,000 $ 0 $ 0 $ 0 $ . T. Holton 74.000 36.000 16.500 W. Nix 23.100 9,900 12,200 5,600 15,800 C. Percy 92,500 K. Willis All services are performed on terms of 30. Assume all sales occurred on the last day of the month Mufu estimates bad debts using the following rates: 90 to 119 Over 119 days past due days past due 20% 50% 1 to 29 days30 to 59 days 60 to 89 days past due past due past due 1% 4% 10% Not yet due 0.5% Required a. Complete a Schedule of Accounts Receivable by Age at September 30, 2020 (similar to Exhibit 8.13). b. The Allowance for Doubtful Accounts showed an unadjusted balance on September 30, 2020, of $1,900. Record the adjusting entry at September 30, 2020, to estimate uncollectible accounts. 587 June man 8-9A Customer Total B. Axley 32000 To Holton 116000 W. Nix 4100D c. Percy 19000 k. Willis 82000 32000 G 9000 15000 1000 1400D 82.000 3300 9000 - - 1 21000 5000 Totals 290000 122000 42000 73000 21000 32000 Percent uncollectable 0.5% X 1% 4% 10% 20% 610 400 2920 2100 estimated uncollectible accts. 6400 Total = 13 12,450 14,050 Sep 30 Bad debt expense Allowance for D.A - 14,050 for uncollectible To record estimate accounts: Allowance for BeA unadjusted 1600 Balance Sep 30 14,050 12,450 Desired ad usted Balance

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