Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis discloses the following information: LO 6.5 Balance Age of Receivable Estimated Percentage Uncollectible 0.8% 2.0% $193,000 114,000 73,000 41,000 25,000 19,000 $465,000 Under 30 days 30-60 days 61-120 days 121-240 days 241-360 days Over 360 days SHOW ME HOW 5.0% 20.0% 35.0% 60.0% Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is: a. 0 b. $3,000 (debit) $2.800 (credit)
Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis discloses the following information: LO 6.5 Balance Age of Receivable Estimated Percentage Uncollectible 0.8% 2.0% $193,000 114,000 73,000 41,000 25,000 19,000 $465,000 Under 30 days 30-60 days 61-120 days 121-240 days 241-360 days Over 360 days SHOW ME HOW 5.0% 20.0% 35.0% 60.0% Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is: a. 0 b. $3,000 (debit) $2.800 (credit)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help completing the excel spreadsheet cells for P6-10
Here’s the attachment
Transcribed Image Text:E6-10
Aging Analysis of Accounts Receivable Cowen's, a large department store located in a metropolitan arca, has
been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule
for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis
discloses the following information:
LO 6.5
Balance
Age of Receivable
Estimated Percentage Uncollectible
$193,000
114,000
73,000
41,000
25,000
19,000
$465,000
Under 30 days
30-60 days
61-120 days
121-240 days
241-360 days
Over 360 days
0.8%
2.0%
SHOW
ME HOW
5.0%
20.0%
35.0%
60.0%
Required:
1. Use the preceding analysis to compute the estimated amount of uncollectible receivables.
2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for
Doubtful Accounts prior to adjustment is:
a. 0
b. $3,000 (debit)
c. $2,800 (credit)
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