Innovative Tech Incorporated (ITI) has been using the percentage of credit sales method to estimate bad...

 

Transcribed Image Text:

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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83.300. aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old. $3,300. 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 $1,250 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No 1 Date November 30 Bad Debt Expense Allowance for Doubtful Accounts Required 1 General Journal Required 2 > Debit Credit 1,125 1,125 31F Clear 10 6 points eBook Hint 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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 $1,250 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. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Mc Graw Hill Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 to 30 31 to 90 Over 90 Total Accounts Receivable $ 69 68,000 $ Estimated Uncollectible (%) 12 Estimated Uncollectible ($) $ 8,160 $ 12,000 $ 24 2,880 $ 3,300 $ 83,300 48 1,584 $ 12,624 < Required 1 Required 3 > Q Search < Prev 6 of 9 Next > L Show less A C ] apter & Connect X + https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252... A Chapter 8 Connect Homework 6 Saved 10 6 points Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet eBook < 1 Hint Print References Mc Graw Hill Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits. Date December 31 General Journal Debit Credit + Clear entry Record entry A View general journal < Required 2 Required 4 > < Prev 6 of 9 Next > Help Save & Exit Check https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252... A Chapter 8 Connect Homework 6 i Saved 10 6 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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. points Required: eBook Hint 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 $1,250 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. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Mc Graw Hill Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Incorporated (ITI) Balance Sheet (partial) At December 31 < Required 3 Required 4 > < Prev 6 of 9 Next > Help Save & Exit Check my 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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83.300. aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old. $3,300. 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 $1,250 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare the November adjusting entry for bad debts. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No 1 Date November 30 Bad Debt Expense Allowance for Doubtful Accounts Required 1 General Journal Required 2 > Debit Credit 1,125 1,125 31F Clear 10 6 points eBook Hint 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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. Required: 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 $1,250 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. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Mc Graw Hill Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 to 30 31 to 90 Over 90 Total Accounts Receivable $ 69 68,000 $ Estimated Uncollectible (%) 12 Estimated Uncollectible ($) $ 8,160 $ 12,000 $ 24 2,880 $ 3,300 $ 83,300 48 1,584 $ 12,624 < Required 1 Required 3 > Q Search < Prev 6 of 9 Next > L Show less A C ] apter & Connect X + https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252... A Chapter 8 Connect Homework 6 Saved 10 6 points Before the end-of-year adjusting entry is made, the Allowance for Doubtful Accounts has a $1,250 credit balance at December 31. Prepare the December 31 adjusting entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet eBook < 1 Hint Print References Mc Graw Hill Record the adjusting entry for bad debts as of December 31. Note: Enter debits before credits. Date December 31 General Journal Debit Credit + Clear entry Record entry A View general journal < Required 2 Required 4 > < Prev 6 of 9 Next > Help Save & Exit Check https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252... A Chapter 8 Connect Homework 6 i Saved 10 6 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 $150,000 and estimated that 3/4 of 1 percent of those sales would be uncollectible. points Required: eBook Hint 1. Prepare the November adjusting entry for bad debts. 2. Starting in December, ITI switched to using the aging method. At its December 31 year-end, total Accounts Receivable is $83,300, aged as follows: (1) 1 to 30 days old, $68,000; (2) 31 to 90 days old, $12,000; and (3) more than 90 days old, $3,300. 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 $1,250 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. Print Complete this question by entering your answers in the tabs below. References Required 1 Required 2 Required 3 Required 4 Mc Graw Hill Show how the various accounts related to accounts receivable should be shown on the December 31 balance sheet. Innovative Tech Incorporated (ITI) Balance Sheet (partial) At December 31 < Required 3 Required 4 > < Prev 6 of 9 Next > Help Save & Exit Check my