2 New Airport Marine had the following amounts owed to them: Amount $6,500 2,100 11,300 2,225...

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2 New Airport Marine had the following amounts owed to them: Amount $6,500 2,100 11,300 2,225 11,585 685 1,430 1,650 Customer Mercury Corp Smith Marine Sea Horse Boats Boat World Big Insurance Company Larry Smith Alex Hackett Fla Marine Patrol Prepare an accounts receivable aging for New Airport Marine. Days past due Total 0 1-30 Mercury Cop Smith Marine Sea Horse Boat Boat world Big Insurance company Larry smith Alex Haxkett Fla Marine Patrol Total 6,500 2,100 11,300 11,300 2,225 2,225 11,585 685 1,430 1650 37,475 685 1,430 13,525 2115 Days past due 62 45 0 0 105 16 24 65 31-60 61-90 6,500 2,100 2,100 I >90 11,585 1650 8,150 11,585 3 Management of New Airport reviewed their bad debts over the last few years and have determined that the following percentages are a fair estimate of collectability. Using the aging totals from exercise 2 above, determine the balance in the allowance for uncollectible accounts. Days past due % Uncollectible Aging totals Total bad debts 0 2% 1-30 5% 31-60 10% Dr Prepare the entry to record the bad debts expense if the balance in the allowance account is 0. 61-90 15% Dr Cr Prepare the entry to record the bad debts expense if the balance in the allowance account is $2,500. Dr >90 25% Cr Prepare the entry to record the bad debts expense if the balance in the allowance account is $550 (debit balance). Cr 2 New Airport Marine had the following amounts owed to them: Amount $6,500 2,100 11,300 2,225 11,585 685 1,430 1,650 Customer Mercury Corp Smith Marine Sea Horse Boats Boat World Big Insurance Company Larry Smith Alex Hackett Fla Marine Patrol Prepare an accounts receivable aging for New Airport Marine. Days past due Total 0 1-30 Mercury Cop Smith Marine Sea Horse Boat Boat world Big Insurance company Larry smith Alex Haxkett Fla Marine Patrol Total 6,500 2,100 11,300 11,300 2,225 2,225 11,585 685 1,430 1650 37,475 685 1,430 13,525 2115 Days past due 62 45 0 0 105 16 24 65 31-60 61-90 6,500 2,100 2,100 I >90 11,585 1650 8,150 11,585 3 Management of New Airport reviewed their bad debts over the last few years and have determined that the following percentages are a fair estimate of collectability. Using the aging totals from exercise 2 above, determine the balance in the allowance for uncollectible accounts. Days past due % Uncollectible Aging totals Total bad debts 0 2% 1-30 5% 31-60 10% Dr Prepare the entry to record the bad debts expense if the balance in the allowance account is 0. 61-90 15% Dr Cr Prepare the entry to record the bad debts expense if the balance in the allowance account is $2,500. Dr >90 25% Cr Prepare the entry to record the bad debts expense if the balance in the allowance account is $550 (debit balance). Cr

Answer rating: 100% (QA)

To determine the balance in the allowance for uncollectible accounts we need to calculate the estima... View the full answer