Accessibility tab summary: A statement for requirement 1 is presented in rows 4 to 5. The table for student presentation is presented in cells A7 to E15. A statement for requirement 2 is presented in rows 17 to 21. The table for student presentation is presented in A22 to F33. A statement for requirement 3 is presented in row 35. The table for student presentation is presented in A37 to C39. A statement for requirement 4 is presented in row 41. The table for student presentation is presented in A43 to C45.
Xercise Cycles Company sells exercise equipment to gyms on account. At year end, the following accounts receivable were uncollected.
Required:
1) Calculate the number of days unpaid, using the Excel DAYS function.
Customer	Amount	Invoice Date	Today's Date	Number of Days Unpaid
Fitness Mania	$2,500	6/17/2022	12/31/2022	197
Health for Life	1,900	12/21/2022	12/31/2022	10
Holistic Health Options	12,750	10/12/2022	12/31/2022	80
Image Reimaging	7,000	12/5/2022	12/31/2022	26
Today's Gym World	4,600	11/29/2022	12/31/2022	32
Whole Life Fitness Center	15,900	11/20/2022	12/31/2022	41
Workouts Unlimited	3,800	10/2/2022	12/31/2022	90
Total	$48,450
2) Use the information above to complete the Aging of Accounts Receivable Schedule below.
Create a formula for each age category, using the Excel IF function to determine where each customer amount belongs.
Calculate each "Total" cell by using the Excel SUM function and include all possible cells. Leave no cells blank.
HINT: Use the =AND function to check for date ranges. For example, =IF(AND(E8>30,E8<=60),[VALUE IF TRUE],[VALUE IF FALSE]))
	Number of Days Unpaid
Customer	0-30	31-60	61-90	Over 90	Total
Fitness Mania	$0	$0	$0	$2,500	$2,500
Health for Life	1,900	0	0	0	1,900
Holistic Health Options	0	0	12,750	0	12,750
Image Reimaging	7,000	0	0	0	7,000
Today's Gym World	0	4,600	0	0	4,600
Whole Life Fitness Center	0	15,900	0	0	15,900
Workouts Unlimited	0	0	3,800	0	3,800
Total Accounts Receivable	$8,900	$20,500	$16,550	$2,500	$48,450
Estimated Uncollectible (%)	2%	10%	25%	45%
Estimated Uncollectible ($)	$178	$2,050	$4,138	$1,125	$0
3) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Allowance for Doubtful Accounts	$250	credit balance
Bad Debt Expense	$48,700
Allowance for Doubtful Accounts		$48,700
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Allowance for Doubtful Accounts	$100	debit balance
Bad Debt Expense	$48,800
Allowance for Doubtful Accounts		$48,800