question archive Company estimates uncollectible accounts using the allowance method at December 31
Company estimates uncollectible accounts using the allowance method at December 31
Subject:AccountingPrice: Bought3
Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis: Number of days past due Total Current 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $37,450 13,400 11,800 8,350 1,500 2,400 Percent Juncollectible 2% 3% 8% 15% 25% Instruction: a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. (10 marks) b. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $235 credit, prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Show all workings clearly. (10 marks) Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $980 debit, prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Show all workings clearly.
