! Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 56,000 Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 Req A Req B and C 3% Complete this question by entering your answers in the tabs below. 1 to 30 $ 110,000 Estimated balance of allowance for uncollectibles 4% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $14,000 credit. < Req A 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 $3,000 debit. 7% 61 to 90 $ 38,000 9% Req B and C > Over 90 $ 50,000 12% Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
! Required information [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due 31 to 60 $ 56,000 Accounts receivable Percent uncollectible Total 0 $ 670,000 $ 416,000 Req A Req B and C 3% Complete this question by entering your answers in the tabs below. 1 to 30 $ 110,000 Estimated balance of allowance for uncollectibles 4% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $14,000 credit. < Req A 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 $3,000 debit. 7% 61 to 90 $ 38,000 9% Req B and C > Over 90 $ 50,000 12% Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
![Required information
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due
31 to 60
$ 56,000
7%
Accounts receivable
Percent uncollectible
Total
0
$ 670,000 $ 416,000
Req A
Req B and C
3%
Complete this question by entering your answers in the tabs below.
1 to 30
$ 110,000
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $14,000 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 $3,000 debit.
Estimated balance of allowance for uncollectibles
4%
< Req A
61 to 90
$ 38,000
9%
Over 90
$ 50,000
12%
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to
estimate uncollectibles, instead of the aging of receivables method.
Req B and C >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F31535642-8e92-41fd-b2aa-d9c415d90eef%2Fbba772bf-5373-445e-b147-f555e849dd48%2Flajf8bx_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
Days Past Due
31 to 60
$ 56,000
7%
Accounts receivable
Percent uncollectible
Total
0
$ 670,000 $ 416,000
Req A
Req B and C
3%
Complete this question by entering your answers in the tabs below.
1 to 30
$ 110,000
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% 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 $14,000 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 $3,000 debit.
Estimated balance of allowance for uncollectibles
4%
< Req A
61 to 90
$ 38,000
9%
Over 90
$ 50,000
12%
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to
estimate uncollectibles, instead of the aging of receivables method.
Req B and C >
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