Daley Company prepared the following aging of receivables analysis at December 31:| | Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 ||-------------------------|---------|----------|----------|----------|----------|---------|| Accounts Receivable | $600,000| $402,000 | $96,000 | $42,000 | $24,000 | $36,000 || Percent uncollectible | | 1% | 2% | 5% | 7% | 10% |**Exercise 7-14 (Algo) Aging of Receivables Method LO P3**a. Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.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 $4,200 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 $700 debit.Complete this question by entering your answers in the tabs below.**Req A** | **Req B and C**Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.| **Accounts Receivable** | **x** | **Percent Uncollectible (%)** | **= Estimated Uncollectible** ||-------------------------|-------|-------------------------------|-------------------------------|| Not due: | x | | || 1 to 30: | x | | || 31 to 60: | x | | || 61 to 90: | x | | || Over 90: | x | | || | | **Estimated balance of allowance for uncollectibles** | | ### Journal Entry Adjustment for Bad DebtsTo ensure accurate financial reporting, it is important to adjust entries for bad debt expenses. Below are the steps for preparing these adjustments based on different scenarios.#### Adjusting Entries:**b. When the Allowance for Doubtful Accounts is a $4,200 Credit:**- **Scenario:** You need to record a bad debt expense given the unadjusted credit balance in the Allowance for Doubtful Accounts is $4,200.- **Journal Entry Worksheet:** - **Date:** December 31 - Record the estimated bad debts by adjusting the Allowance for Doubtful Accounts accordingly.**c. When the Allowance for Doubtful Accounts is a $700 Debit:**- **Scenario:** This is not shown in the image but is a continuation of the task where you need to adjust the entry when the Allowance for Doubtful Accounts shows a debit.#### Instructions for Journal Entry:- **Note:** Enter debits before credits. The table is divided into columns for the date, general journal entry description, and debit/credit amounts to be filled.Utilizing this worksheet helps ensure that the company's financial statements reflect a realistic view of collectible accounts, maintaining accuracy and compliance with accounting principles.

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 42,000 5% Accounts receivable Percent uncollectible Total $ 600,000 0 $ 402,000 1% 1 to 30 $ 96,000 Exercise 7-14 (Algo) Aging of receivables method LO P3 2% 61 to 90 $ 24,000 7% Over 90 $36,000 10% a. Complete the table below to calculate the estimated balance Allowance for Doubtful Accounts using aging of accounts receivable. 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 $4,200 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 $700 debit.

Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 42,000 5% Accounts receivable Percent uncollectible Total $ 600,000 0 $ 402,000 1% 1 to 30 $ 96,000 Exercise 7-14 (Algo) Aging of receivables method LO P3 2% 61 to 90 $ 24,000 7% Over 90 $36,000 10% a. Complete the table below to calculate the estimated balance Allowance for Doubtful Accounts using aging of accounts receivable. 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 $4,200 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 $700 debit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following aging information pertains to Jacobsen Company's accounts receivable at December 31, 2024: Days Outstanding Amount Estimated % Uncollectible 0-30 $ 420,000 2% 31-60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2024, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2023, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2024?
The beginning balance in the Allowance for Uncollectible Accounts account is a $3,500 credit. After conducting an aging analysis, management has determined that $11,700 of accounts receivable will be uncollectible. What is the ending balance in the Allowance for Uncollectible Accounts account? $11,700 $3,500 $15,200 $8,200
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Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.]Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 625,000 $ 407,000 $ 101,000 $ 47,000 $ 29,000 $ 41,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % Exercise 9-9 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 $13,100 credit.c. Prepare the adjusting entry to record bad debts expense…
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Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 56,000 7% Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 Req A Req B and C 3% Complete this question by entering your answers in the tabs below. 1 to 30 $ 110,000 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 $14,000 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 $3,000 debit. Estimated balance of allowance for uncollectibles 4%
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The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $8,150. Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $2,360 Greg Gagne 1,470 Amber Kisko 5,620 Shannon Poole 3,260 Niki Spence 900 Dec. 31. If necessary, record the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel Aug. 14 Cash…
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