Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 37,000 6% Accounts receivable Percent uncollectible Total 0 $ 575,000 $ 397,000 28 1 to 30 $ 91,000 38 61 to 90 $ 19,000 8% Complete this question by entering your answers in the tabs below. Over 90 $ 31,000 118 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 $3,700 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 $200 debit.
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.
![Mc
Graw
Hill
Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due
31 to 60
$ 37,000
Accounts receivable
Percent uncollectible
Req A
Req B and C
Complete this question by entering your answers in the tabs below.
Accounts
Receivable
X
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 $3,700 credit.
Total
0
$575,000 $ 397,000
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 $200 debit.
X
Not due:
1 to 30:
31 to 60:
61 to 90:
Over 90:
Estimated balance of allowance for uncollectibles
X
X
X
Complete the table below to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts
receivable.
X
Percent
Uncollectible (%)
=
=
=
2%
=
=
< Reg A
1 to 30
$ 91,000
Estimated
Uncollectible
$
3%
0
6%
61 to 90
$ 19,000
8%
Reg B and C >
Over 90
$ 31,000
11%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F306b46b2-b30d-4962-bd1a-be8f68594746%2Fd6eedb80-9e50-4320-ae29-5b61153eeadf%2Ff3mznrs_processed.png&w=3840&q=75)
![Mc
Graw
Hill
Req A
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 $3,700 credit.
Req B and C
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 $200 debit.
1
View transaction list
Record estimated bad debts assuming that Allowance for
Doubtful Accounts has a $3,700 credit balance.
2 Record estimated bad debts assuming that Allowance for
Doubtful Accounts has a $200 debit balance.
Note :
= journal entry has been entered
EX:
counts
Credit
>
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