PART B REQUIRED

Data Balance outstanding. Dec. 31 Estimated default rate Accounts written off during the year Collections on accounts written off Allowance for uncollectibles, Jan. 1 Days outstanding from invoice date 0-30 days 31-90 days > 90 days Total $ 7,700,000 $ 3.300.000 $ 600,000 $11.600.000 0.5% 7% 8% S 65,000 2.000 S 327,500 Print Done Eastwick Company is preparing its financial statement for the year-end. A summary of Eastwick's accounts receivable sub-ledger shows the following information. (Click the icon to view the data.) Required Requirement a. Determine the amount of bad debts expense required for the year Determine the bad debts expense (BDE) by showing the activity in the allowance for doubtful accounts T-account during the year. Allowance for Doubtful Accounts Beg bal Beg bal NI End bal End bal Requirement b. Show the journal entry to record bad debts expense for the year. (Record debits first, and then credits. Explanations are not required.) Date Accounts Debit Credit b Requirement c. Show the journal entry that was used to record write-offs for the year. (Record debits first and then credits. Explanations are not required.) Date Accounts Debit Credit c Requirement d. Independent of the information above suppose Eastwick factored $300,000 of receivables without recourse. In exchange, it received $730,000. Show the joumal entry to record this transfer of receivables. (Record debits first, and then credits. Explanations are not required.) Date Accounts Debit Credit d