Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable Percent uncollectible $ 630,000 $ 408,000 1 to 30 $ 102,000 Days Past Due 31 to 60 $ 48,000 61 to 90 $ 30,000 Over 90 $ 42,000 18 28 5% 78 10% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% 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 $13,200 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 $2,200 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectibles Reg A Req B and C >
Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable Percent uncollectible $ 630,000 $ 408,000 1 to 30 $ 102,000 Days Past Due 31 to 60 $ 48,000 61 to 90 $ 30,000 Over 90 $ 42,000 18 28 5% 78 10% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% 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 $13,200 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 $2,200 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectibles Reg A Req B and C >
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4PA: Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The...
Related questions
Question
![Daley Company prepared the following aging of receivables analysis at December 31.
Total
Accounts receivable
Percent uncollectible
$ 630,000 $ 408,000
1 to 30
$ 102,000
Days Past Due
31 to 60
$ 48,000
61 to 90
$ 30,000
Over 90
$ 42,000
18
28
5%
78
10%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% 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 $13,200 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 $2,200 debit.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to
estimate uncollectibles, instead of the aging of receivables method.
Estimated balance of allowance for uncollectibles
Reg A
Req B and C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F30087330-3f61-40cc-b404-55ea18b96426%2F28fddd01-6819-4995-a34b-3bc13c078e18%2F8kv0a6r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Daley Company prepared the following aging of receivables analysis at December 31.
Total
Accounts receivable
Percent uncollectible
$ 630,000 $ 408,000
1 to 30
$ 102,000
Days Past Due
31 to 60
$ 48,000
61 to 90
$ 30,000
Over 90
$ 42,000
18
28
5%
78
10%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% 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 $13,200 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 $2,200 debit.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to
estimate uncollectibles, instead of the aging of receivables method.
Estimated balance of allowance for uncollectibles
Reg A
Req B and C >
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