12 Required information Use the following information for the Exercises 14-15 below. (Algo) [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. 13:28 Total 1 to 30 Days Past Due 31 to 60 61 to 90 Accounts receivable $ 580,000 $ 398,000 $ 92,000 $ 38,000 $ 20,000 Percent uncollectible 3% 4% 7% ง 9% bk t ences Over 90 $ 32,000 12% Exercise 7-15 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of 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 $12,200 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 $1,200 debit.
12 Required information Use the following information for the Exercises 14-15 below. (Algo) [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. 13:28 Total 1 to 30 Days Past Due 31 to 60 61 to 90 Accounts receivable $ 580,000 $ 398,000 $ 92,000 $ 38,000 $ 20,000 Percent uncollectible 3% 4% 7% ง 9% bk t ences Over 90 $ 32,000 12% Exercise 7-15 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of 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 $12,200 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 $1,200 debit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Note:-
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![f2
Required information
Use the following information for the Exercises 14-15 below. (Algo)
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
13:28
Total
0
Accounts receivable
$ 580,000
$ 398,000
1 to 30
$ 92,000
Days Past Due
31 to 60
61 to 90
$ 38,000
$ 20,000
Percent uncollectible
3%
4%
7%
9%
ok
t
nces
Over 90
$ 32,000
12%
Exercise 7-15 (Algo) Percent of receivables method LO P3
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to
estimate uncollectibles, instead of the aging of 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 $12,200 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 $1,200 debit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F50c31116-75cb-470d-942c-ff73ec69f096%2Ff7ffd430-b5d3-4500-96d4-c033e6adcfac%2Fk8bbe3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:f2
Required information
Use the following information for the Exercises 14-15 below. (Algo)
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
13:28
Total
0
Accounts receivable
$ 580,000
$ 398,000
1 to 30
$ 92,000
Days Past Due
31 to 60
61 to 90
$ 38,000
$ 20,000
Percent uncollectible
3%
4%
7%
9%
ok
t
nces
Over 90
$ 32,000
12%
Exercise 7-15 (Algo) Percent of receivables method LO P3
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to
estimate uncollectibles, instead of the aging of 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 $12,200 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 $1,200 debit.
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