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Note: Assignment due by 11:00 P.M Tonight! Pleas...

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Note: Assignment due by 11:00 P.M Tonight! Please Help! Thanks!! Exercise 9-7 Percent of receivables method L.O. P2 Hecter Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $ 190,000 $ 132,000 $ 30,000 $ 12,000 $ 6,000 $ 10,000 Percent uncollectible 1 % 2 % 4 % 7 % 12 % a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 3.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. (Omit the "$" sign in your response.) Allowance for doubtful accounts $ 4,220 incorrect 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 $300 credit. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec 31 Allowance for doubtful accounts incorrect 3,720 incorrect Accounts receivable incorrect 3,720 incorrect 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 $200 debit. (Omit the "$" sign in your response.) Date General Journal Debit Credit Dec 31 Allowance for doubtful accounts incorrect 4,220 incorrect Accounts receivable incorrect 4,220 incorrect

 

Paper#6543 | Written in 18-Jul-2015

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