Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Total $600,000...

Transcribed Image Text:

Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Total $600,000 0 1 to 30 Days Past Due 31 to 60 61 to 90 Over 90 $402,000 $96,000 Percent uncollectible 1% 2% $42,000 5% $24,000 $36,000 7% 10% Required: a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. (Use cells A4 to G6 from the given information to complete this question.) 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 $12,600 credit. c. 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 $1,600 debit. 6.00% $12,600 credit $1,600 debiit (Use cells A3 to A22 from "Chart of Accounts" and A16 to AF19 from from the given information to complete this question.) Part B Date December 31 C December 31 General Journal Debit Credit Daley Company prepared the following aging of receivables analysis at December 31. Accounts receivable Total $600,000 0 1 to 30 Days Past Due 31 to 60 61 to 90 Over 90 $402,000 $96,000 Percent uncollectible 1% 2% $42,000 5% $24,000 $36,000 7% 10% Required: a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. (Use cells A4 to G6 from the given information to complete this question.) 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 $12,600 credit. c. 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 $1,600 debit. 6.00% $12,600 credit $1,600 debiit (Use cells A3 to A22 from "Chart of Accounts" and A16 to AF19 from from the given information to complete this question.) Part B Date December 31 C December 31 General Journal Debit Credit