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May you please answer PART D & E. Part D&E is the portion I'm having trouble with.

May you please answer PART D & E. Part D&E is the portion I'm having trouble with.

FINANCIAL ACCOUNTING
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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May you please answer PART D & E. Part D&E is the portion I'm having trouble with.

P9.4 (LO 2), AP Writing Rigney Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. Worksheet Home Insert Page Layout Formulas Data Review View P18 fx A B D E F G 1 Number of Days Outstanding 2 Total 0-30 77,000 1% 31-60 61-90 91-120 Over 120 23,000 8% 3 4 Accounts receivable 200,000 % uncollectible 6 Estimated bad debts 46,000 4% 39,000 5% 15,000 20% 7 Instructions a. Calculate the total estimated uncollectibles based on the above information. a. Tot. est. bad debts $9,400 b. Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,000 debit. c. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry or entries necessary to restore the account and record the cash collection. e. Comment on how your answers to (a)-(d) would change if Rigney Inc. used 4% of total accounts receivable, rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? Journalize entries to record transactions related to bad debts.
Transcribed Image Text:P9.4 (LO 2), AP Writing Rigney Inc. uses the allowance method to estimate uncollectibles. The company produced the following aging of the accounts receivable at year-end. Worksheet Home Insert Page Layout Formulas Data Review View P18 fx A B D E F G 1 Number of Days Outstanding 2 Total 0-30 77,000 1% 31-60 61-90 91-120 Over 120 23,000 8% 3 4 Accounts receivable 200,000 % uncollectible 6 Estimated bad debts 46,000 4% 39,000 5% 15,000 20% 7 Instructions a. Calculate the total estimated uncollectibles based on the above information. a. Tot. est. bad debts $9,400 b. Prepare the year-end adjusting journal entry to record the Bad Debt Expense using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $8,000 debit. c. Of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. d. The company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry or entries necessary to restore the account and record the cash collection. e. Comment on how your answers to (a)-(d) would change if Rigney Inc. used 4% of total accounts receivable, rather than aging the accounts receivable. What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable? Journalize entries to record transactions related to bad debts.
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