The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 640,000 $ 410,000 $ 104,000 $ 50,000 $ 32,000 $ 44,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 % 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 $13,400 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 $2,400 debit. 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. 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 $13,400 credit. 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 $2,400 debit. Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,400 credit balance. Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $2,400 debit balance.
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.
[The following information applies to the questions displayed below.]
Daley Company prepared the following aging of receivables analysis at December 31.
| Days Past Due | |||||||||||||||||||||||
| Total | 0 | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 | ||||||||||||||||||
| $ | 640,000 | $ | 410,000 | $ | 104,000 | $ | 50,000 | $ | 32,000 | $ | 44,000 | ||||||||||||
| Percent uncollectible | 3 | % | 4 | % | 7 | % | 9 | % | 12 | % | |||||||||||||
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
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 $2,400 debit.
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.
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 $13,400 credit.
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 $2,400 debit.
Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,400 credit balance.
Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $2,400 debit balance.
![Required Information
[The following Information applies to the questions displayed below.]
Daley Company prepared the following aging of recelvables analysis at December 31.
Days Past Due
1 to 30
$104, e00
3%
Total
31 to 6e 61 to 90
Over 90
$50, e00
$44, e00
9%
Accounts receivable
$640, e00 $410, e00
$32, e00
7%
Percent uncollectible
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts recelvable to estimate
uncollectibles, Instead of the aging of recelvables 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 $13,400 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 $2,400 deblt.
Complete this question by entering your answers in the tabs below.
Req A
Req B and 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 $13,400 credit.
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 $2,400 debit."
Show lessA
View transaction list
Journal entry worksheet
2
>
Record estimated bad debts assuming that Allowance for Doubtful
Accounts has a $13,400 credit balance.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44d84d1f-5997-4168-9e5f-f56ef74728ed%2F18f771ab-0798-4012-99e7-a971b8aed54c%2Fekpja7t_processed.png&w=3840&q=75)
![Required Information
[The following Information applies to the questions displayed below.]
Daley Company prepared the following aging of recelvables analysis at December 31.
Days Past Due
1 to 30
$104, e00
3%
Total
31 to 6e 61 to 90
Over 90
$50, e00
$44, e00
9%
Accounts receivable
$640, e00 $410, e00
$32, e00
7%
Percent uncollectible
12%
a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts recelvable to estimate
uncollectibles, Instead of the aging of recelvables 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 $13,400 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 $2,400 deblt.
Complete this question by entering your answers in the tabs below.
Req A
Req B and 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 $13,400 credit.
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 $2,400 debit."
Show lessA
View transaction list
Journal entry worksheet
2
>
Record estimated bad debts assuming that Allowance for Doubtful
Accounts has a $13,400 credit balance.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 31](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44d84d1f-5997-4168-9e5f-f56ef74728ed%2F18f771ab-0798-4012-99e7-a971b8aed54c%2Fi8gr2hn_processed.png&w=3840&q=75)
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