Hansel Company had 20X1 credit sales of $2,250,000 and cash sales of $1 million. At year-end,...

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Hansel Company had 20X1 credit sales of $2,250,000 and cash sales of $1 million. At year-end, Hansel Company's accounts receivable balance was $600,000 and the allowance for doubtful accounts had a $5,000 debit balance. a. What journal entry is required under each of the following three independent assumptions? i. Hansel estimates 2.5% of credit sales are uncollectible ii. Hansel estimates 1.5% of total sales are uncollectible iii. Hansel estimates 6% of accounts receivable are uncollectible b. Show the balance sheet presentation for parts i and iii. Gretel Company's accounts receivable has a year-end balance of $915,000 and its allowance for doubtful accounts has a $6,000 credit balance. Gretel ages its accounts receivable and estimates uncollectible accounts as follows: Age Not due A/R Balance Uncollectible $550,000 1.00% 1-30 days past due $220,000 1.80% 31-60 days past due $85,000 8.50% 61-90 days past due $48,000 30.00% Over 90 days past due $12,000 75.00% $915,000 a. Record the journal entry to estimate bad debts at year-end 12/31/X1. (The aging method is a form of the percentage of A/R method. Multiply each percentage by the appropriate A/R balance. Then add up these amounts to get the total desired allowance for doubtful accounts balance. Subtract the current allowance balance from your desired allowance for doubtful accounts balance to determine the amount of your journal entry.) b. Record the journal entry next year (5/5/X2) if Dead Company goes bankrupt owing Gretel $5,000. Hansel Company had 20X1 credit sales of $2,250,000 and cash sales of $1 million. At year-end, Hansel Company's accounts receivable balance was $600,000 and the allowance for doubtful accounts had a $5,000 debit balance. a. What journal entry is required under each of the following three independent assumptions? i. Hansel estimates 2.5% of credit sales are uncollectible ii. Hansel estimates 1.5% of total sales are uncollectible iii. Hansel estimates 6% of accounts receivable are uncollectible b. Show the balance sheet presentation for parts i and iii. Gretel Company's accounts receivable has a year-end balance of $915,000 and its allowance for doubtful accounts has a $6,000 credit balance. Gretel ages its accounts receivable and estimates uncollectible accounts as follows: Age Not due A/R Balance Uncollectible $550,000 1.00% 1-30 days past due $220,000 1.80% 31-60 days past due $85,000 8.50% 61-90 days past due $48,000 30.00% Over 90 days past due $12,000 75.00% $915,000 a. Record the journal entry to estimate bad debts at year-end 12/31/X1. (The aging method is a form of the percentage of A/R method. Multiply each percentage by the appropriate A/R balance. Then add up these amounts to get the total desired allowance for doubtful accounts balance. Subtract the current allowance balance from your desired allowance for doubtful accounts balance to determine the amount of your journal entry.) b. Record the journal entry next year (5/5/X2) if Dead Company goes bankrupt owing Gretel $5,000.