Exercise 7-6 Aging of receivables method LO P2 Daley Company estimates uncollectible accounts using the...
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Exercise 7-6 Aging of receivables method LO P2 Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis Days Past Due Total 1 to 30 31 to 60 61 to 90Over 90 Accounts receivable Percent uncollectible $670,000 $416,000 $110,000 $56,000 $38,000 $50,000 4% 3% 7% 9% 12% a.Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method Accounts Receivable Percent Uncollectible (% Not due: 1 to 30: 31 to 60 61 to 90: Over 90 Estimated balance of allowance for uncollectibles 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 $5,600 credit and $2,100 debit. View transaction list Journal entry worksheet 2 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $5,600 credit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal
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