Innovative Tech Incorporated $($ITI$)$ has been using the percentage of credit sales method to estimate bad debts. During November, ITI sold services on account for $$160,000$ and estimated that $3/4$ of $1$ percent of those sales would be uncollectible.

Required:

Prepare the November adjusting entry for bad debts.

Starting in December, ITI switched to using the aging method. At its December $31$ year$-$end, total Accounts Receivable is $$80,000,$ aged as follows:

$1$ to $30$ days old, $$65,000$;$31$ to $90$ days old, $$12,000$; andmore than $90$ days old, $$3,000.$

The average rate of uncollectibility for each age group is estimated to be

$12$ percent,$24$ percent, and$48$ percent, respectively.

Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts.

Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $$1,100$ credit balance at December $31.$ Prepare the December $31$ adjusting entry.

Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.

The average rate of uncollectibility for each age group is estimated to be

$1.12$ percent,

$2.24$ percent, and

$3.48$ percent, respectively.

Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts.

$3.$ Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $\backslash$$$1,100$ credit balance at December $31.$

Prepare the December $31$ adjusting entry.

$4.$ Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Prepare the November adjusting entry for bad debts.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field.

Required $1$

Required $2$

Required $3$

Starting in December, ITI switched to using the aging method. At its December $31$ year$-$end, total Accounts Receivable is $\backslash (\backslash$$ $80,000\backslash ),$ aged as follows: $(1)1$ to $30$ days old, $\backslash (\backslash$$ $65,000\backslash )$; $(2)31$ to $90$ days old, $\backslash (\backslash$$ $12,000\backslash )$; and $(3)$ more than $90$ days old, $\backslash (\backslash$$ $3,000\backslash ).$ The average rate of uncollectibility for each age group is estimated to be $(1)12$ percent, $(2)24$ percent, and $(3)48$ percent, respectively. Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts. $1.12$ percent,

$2.24$ percent, and

$3.48$ percent, respectively.

Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts.

$3.$ Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $\backslash (\backslash$$ $1,100\backslash )$ credit balance at December $31.$ Prepare the December $31$ adjusting entry.

$4.$ Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $\backslash (\backslash$$ $1,100\backslash )$ credit balance at December $31.$ Prepare the December $31$ adjusting entry.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field. Prepare the December $31$ adjusting entry.

$4.$ Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Required $4$

Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet. The average rate of uncollectibility for each age group is estimated to be

$1.12$ percent,

$2.24$ percent, and

$3.48$ percent, respectively.

Prepare a schedule to estimate an appropriate year$-$end balance for the Allowance for Doubtful Accounts.

$3.$ Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $\backslash (\backslash$$ $1,100\backslash )$ credit balance at December $31$ Prepare the December $31$ adjusting entry.

$4.$ Show how the various accounts related to accounts receivable should be shown on the December $31$ balance sheet.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $4$

Prepare the November adjusting entry for bad debts.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field. Answer is not complete.

Complete this question by entering your answers in the tabs below.

Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has a $\backslash$$$1,100$ credit balance at December $31.$ Prepare the December $31$ adjusting entry.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field. $3.$ Before the end$-$of$-$year adjusting entry is made, the Allowance for Doubtful Accounts has $3.$