[The following information applies to the questions displayed below.) Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable Percent uncollectible $ 595,000 $ 401,000 1 to 30 $ 95,000 Days Past Due 31 to 60 $ 41,000 61 to 90 $ 23,000 Over 90 $ 35,000 3% 48 78 98 128 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 $12,500 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 $1,500 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to stimate uncollectibles, instead of the aging of receivables method. timated balance of allowance for uncollectibles Rag A Req B and C >
[The following information applies to the questions displayed below.) Daley Company prepared the following aging of receivables analysis at December 31. Total Accounts receivable Percent uncollectible $ 595,000 $ 401,000 1 to 30 $ 95,000 Days Past Due 31 to 60 $ 41,000 61 to 90 $ 23,000 Over 90 $ 35,000 3% 48 78 98 128 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 $12,500 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 $1,500 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to stimate uncollectibles, instead of the aging of receivables method. timated balance of allowance for uncollectibles Rag A Req B and C >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Provide Req a,b,c
Transcribed Image Text:[The following information applies to the questions displayed below.)
Daley Company prepared the following aging of receivables analysis at December 31.
Total
Accounts receivable
Percent uncollectible
$ 595,000 $ 401,000
1 to 30
$ 95,000
Days Past Due
31 to 60
$ 41,000
61 to 90
$ 23,000
Over 90
$ 35,000
3%
48
78
98
128
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 $12,500 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 $1,500 debit.
Complete this question by entering your answers in the tabs below.
Req A
Req B and C
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to
stimate uncollectibles, instead of the aging of receivables method.
timated balance of allowance for uncollectibles
Rag A
Req B and C >
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