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USE THE AGING APPROACH FOR UNCOLLECTIBLE ACCOUNTS. THE OCTOBER 1, 2020 RECORDS OF FIRST DATA COMMUNICATIONS INCLUDE THESE ACCOUNTS: Accounts Receivable: $230,000 Allowance For uncollectible
USE THE AGING APPROACH FOR UNCOLLECTIBLE ACCOUNTS. THE OCTOBER 1, 2020 RECORDS OF FIRST DATA COMMUNICATIONS INCLUDE THESE ACCOUNTS: Accounts Receivable: $230,000 Allowance For uncollectible : $8,500 Nov 30: wrote off as uncollectible the $1100 account receivable from Rainbow Carpets and the $600 accounts receivable from Show-N-Tell Antiques Dec 31: Peplar Inc., agreed to sign a 60-day note receivable to replace the $1500 accounts receivable due on that day 0-30 DAYS $150000 0.20% AGE OF ACCOUNTS 31-60 DAYS $40000 0.50% 61-90 DAYS $14,000 5.0% OVER 90 DAYS $26,000 30.0% ESTIMATED UNCOLLECTIBLE Requirements: A. Record journal entries for transactions incurred in the fourth quarter provided above. Dates are required B. Compute the bad debt expense and allowance for doubtful account at year-end C. Make a journal entry required by the aging schedule for bad debt expense. D. Show how first data would report its account Accounts Receivable on a COMPARATIVE BALANCE SHEET for 2019 and 2020. At dec 31, 2019 the companys A.R balance was $212,000 and the allowance for uncollectible accounts stood at $4,200
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