A B E G H ! 106 107 108 109 110 111 112 113 NOTE: The Following 4 problems are connected to the same company ABC Software has revenue of 300,000 in 2002 and estimates they should put 10% of revenue in the Allowance for Doubtful accounts. 4 Make the entry on 12/31/2002 for this below - assume they have not had any entries to the Allowance prior to this. DATE Account Debit Credit 114 115 116 117 118 119 120 121 122 123 Accounts Receivable (gross) at 12/31/2002 is the following aged: Age Amount 1-30 days $ 60,000 31-60 days $ 40,000 61-90 days $ 30,000 over 90 days $ 10,000 Total A/R $ 140,000 Target Allowance % they don't think they can collect) 5% 10% 50% 90% 124 5 Based on the above schedule, how much should they have in the Allowance for Doubtful accounts ? 6 Make the Journal entry to adjust the allowance account. Use #4 answer as the current amount in that account DATE Account Debit Credit 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 40 7 Early the next year they decide to write off the receivable from a customer for $2,000 Describe this with a journal entry DATE Account Debit Credit