Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis.Days Past Due31 to 60$ 16,000Accounts receivablePercent uncollectibleTotal$ 178,000Required 1 Required 20$ 98,0001%AccountsreceivableComplete this question by entering your answers in the tabs below.Percentuncollectible (%)Not due:1 to 30:31 to 60:61 to 90:Over 90:Estimated balance of allowance for uncollectibles1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accountsis a $2,800 credit.111 to 30$ 36,000Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method.EstimatedUncollectible=3%==5%61 to 90$ 13,0008%Over 90$ 15,00011%

Under Aging method, Amount of the adjusting entry (bad debts expense) = Estimated balance of…

Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. Days Past Due 31 to 60 $ 16,000 5% Accounts receivable Percent uncollectible Total $ 178,000 $ 98,000 1% 1 to 30 $ 36,000 3% 61 to 90 $ 13,000 8% Over 90 $ 15,000 11% 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,800 credit.

Net Zero Products, a wholesaler of sustainable raw materials, prepares the following aging of receivables analysis. Days Past Due 31 to 60 $ 16,000 5% Accounts receivable Percent uncollectible Total $ 178,000 $ 98,000 1% 1 to 30 $ 36,000 3% 61 to 90 $ 13,000 8% Over 90 $ 15,000 11% 1. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable method. 2. Prepare the adjusting entry to record bad debts expense assuming the unadjusted balance in the Allowance for Doubtful Accounts is a $2,800 credit.

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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