|
total |
0 |
1 to 30 |
31 to 60 |
61 to 90 |
over 90 |
| accs reveivable |
570,000 |
$396,000 |
90,000 |
36,000 |
18,000 |
30,000 |
| % uncollectible |
|
1% |
2% |
5% |
7% |
10% |
a)Estimate the balance of the Allowance for Doubtful accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging receivables method.
b)Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,000 credit
c)Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,000credit.