Required information [The following information applies to the questions displayed below) Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 34 1 to 30: $ 110,000 Req A Complete this question by entering your answers in the tabs below. Req B and C 4% Days Past Due 31 to 60 $ 56,000 7% 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 $5,600 credit. 61 to 90 $ 38,000 9% 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 $2,100 debit. Over 90 $ 50,000 12% debts expense using the estimate from part a. Assume the unadjusted balance in the

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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.