Council Company develops an aged schedule of accounts receivable at the end of each year. The company

Question:

Council Company develops an aged schedule of accounts receivable at the end of each year.

The company estimated an allowance for uncollectible accounts based on the following rules:
The company estimated an allowance for uncollectible accounts based on the following rules:
Aging Category Allowance Provided
Current €¦€¦€¦€¦€¦€¦€¦€¦€¦€¦ 5%
1€“ 30 Days Past Due€¦€¦€¦€¦€¦ 9%
31€“ 60 Days Past Due€¦€¦€¦€¦. 20%
61€“ 90 Days Past Due€¦€¦€¦€¦. 55%
Over 90 Days Past Due€¦€¦€¦... 100%
Council reported net credit sales of $ 20,000,000 for the current year. We present the company€™s ending balances of accounts receivable and the allowance for uncollectible accounts below:

Required
a. Compute the balance required in the allowance for uncollectible accounts.
b. Prepare the journal entry to record the bad debt provision for the current year.
c. Independent of your answer to part (b), prepare the journal entry to record the bad debt provision for the current year assuming that the allowance for uncollectible accounts had a $ 231,000 debit balance.
d. Independent of your prior responses, prepare the journal entry to record bad debt provision for the cur-rent year assuming that the company estimates its uncollectible accounts at 4% of net credit sales.
e. Provide the necessary journal entry based on Council€™s credit management deciding to write off all accounts that were over 90 days past due in the following year.
f. Prepare the journal entries required to record the subsequent recovery of the Smokey Industries€™ receivable if, after the write offs recorded in part (e), Smokey Industries pays the entire balance due.