Chapter 8 Homework i 1 3.5 points Saved E8-8 (Algo) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO 8-2] Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: Help Skipped eBook References 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31. Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 <
Chapter 8 Homework i 1 3.5 points Saved E8-8 (Algo) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit Sales and Aging of Accounts Receivable Methods [LO 8-2] Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: Help Skipped eBook References 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. The average rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts. 3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31. Prepare the December 31 adjusting entry. 4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 <
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![Chapter 8 Homework i
1
3.5
points
Saved
E8-8 (Algo) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit
Sales and Aging of Accounts Receivable Methods [LO 8-2]
Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI
sold services on account for $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible.
Required:
Help
Skipped
eBook
References
1. Prepare the November adjusting entry for bad debts.
2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300,
aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. The average
rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a
schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts.
3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31.
Prepare the December 31 adjusting entry.
4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Required 4
Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
Journal entry worksheet
<
1
<](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5fa8e746-5f38-4211-b4e6-1b44c95b4456%2F8dcdffed-ec87-441c-98e1-afdad7e27e7a%2Flt9kd85_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 8 Homework i
1
3.5
points
Saved
E8-8 (Algo) Recording and Reporting Allowance for Doubtful Accounts Using the Percentage of Credit
Sales and Aging of Accounts Receivable Methods [LO 8-2]
Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad debts. During November, ITI
sold services on account for $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible.
Required:
Help
Skipped
eBook
References
1. Prepare the November adjusting entry for bad debts.
2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300,
aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. The average
rate of uncollectibility for each age group is estimated to be (1) 12 percent, (2) 24 percent, and (3) 48 percent, respectively. Prepare a
schedule to estimate an appropriate year-end balance for the Allowance for Doubtful Accounts.
3. Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31.
Prepare the December 31 adjusting entry.
4. Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Required 4
Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
Journal entry worksheet
<
1
<
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