Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 54,000 5% Accounts receivable Percent uncollectible Total 0 $ 660,000 $ 414,000 18 1 to 30 $ 108,000 28 61 to 90 $ 36,000 78 Over 90 $ 48,000 10% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts ceivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadiusted balance in the
Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 54,000 5% Accounts receivable Percent uncollectible Total 0 $ 660,000 $ 414,000 18 1 to 30 $ 108,000 28 61 to 90 $ 36,000 78 Over 90 $ 48,000 10% Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts ceivable. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadiusted balance in the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
100%
Required a + b and all individual parts
![!
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
$ 54,000
Accounts receivable
Percent uncollectible
Req A
Complete this question by entering your answers in the tabs below.
Req B and C
Not due:
1 to 30:
31 to 60:
Accounts
Receivable
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 $5,400 credit.
X
Total
0
$ 660,000 $ 414,000
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 $1,900 debit.
X
X
X
X
Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts
receivable.
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
X
Percent
Uncollectible (%)
=
=
=
1%
=
=
< Req A
1 to 30
$ 108,000
Estimated
Uncollectible
$
2%
0
5%
61 to 90
$ 36,000
7%
Req B and C >
Over 90
$ 48,000
10%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4c31f947-5848-48a2-943b-5d3c9bff6f43%2F67a7d90e-90c1-4429-ab61-364488168533%2Fupcmjy9_processed.png&w=3840&q=75)
Transcribed Image Text:!
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
$ 54,000
Accounts receivable
Percent uncollectible
Req A
Complete this question by entering your answers in the tabs below.
Req B and C
Not due:
1 to 30:
31 to 60:
Accounts
Receivable
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 $5,400 credit.
X
Total
0
$ 660,000 $ 414,000
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 $1,900 debit.
X
X
X
X
Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts
receivable.
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
X
Percent
Uncollectible (%)
=
=
=
1%
=
=
< Req A
1 to 30
$ 108,000
Estimated
Uncollectible
$
2%
0
5%
61 to 90
$ 36,000
7%
Req B and C >
Over 90
$ 48,000
10%
Transcribed Image Text:Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due
31 to 60
$ 54,000
Accounts receivable
Percent uncollectible
Req A
Complete this question by entering your answers in the tabs below.
Req B and C
Total
0
$ 660,000 $ 414,000
View transaction list
1%
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 $5,400 credit.
1
1 to 30
$ 108,000
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 $1,900 debit.
Journal entry worksheet
2
2%
Nota: Entor dobits boforo credits
5%
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 $5,400 credit.
61 to 90
$ 36,000
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 $1,900 debit.
7%
Record estimated bad debts assuming that Allowance for Doubtful Accounts
has a $5,400 credit balance.
Over 90
$ 48,000
10%
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