Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the...
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Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.
Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Accounts receivable Percent uncollectible Total 0 1 to 30 31 to 60 61 to 90 Over 90 $660,000 $414,000 $108,000 $54,000 $36,000 $48,000 1% 2% 5% 7% 10% a.Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method. X Accounts Percent Receivable Uncollectible (%) Not due X % = 1 to 30: % = 31 to 60: 0% % = 61 to 90: % = Over 90 % = Estimated balance of allowance for uncollectibles $ 0 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 $5,400 credit and $1,900 debit. View transaction list Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $5,400 credit balance. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal
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Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.