Patty Pictures Partners uses the aging method for its accounts receivable. On January 1, the balance...

  

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Patty Pictures Partners uses the aging method for its accounts receivable. On January 1, the balance in the allowance for doubtful accounts was $24,000. For the year, Patty Pictures Partners made $2,560.000 of credit sales, wrote off $60,000 of accounts as uncollectible, and $784,000 remained outstanding at year-end. The following table is the aging schedule for these receivables. 31-90 days Days outstanding from involce date 0-30 days >90 days Total 600.000 Balance outstanding. December 31 Estimated default rate 120,000 64,000 784,000 1.25% 1.50% 4.50% O (Click the icon to view further information.) Required Requirement a. Record the journal entries relating to the factoring transaction. (Enter all the data into the journal entries before checking your work.) To start, we will record the factored amount of the receivable by recording the cash received and the holdback. Account Debit Credit Required Requirements a. Record the journal entries relating to the factoring transaction. b. Determine the amount of bad debts expense for the year. c. Show the journal entry to record bad debts expense for the year. d. Show the journal entry that was used to record write-offs for the year. Patty Pictures Partners uses the aging method for its accounts receivable. On January 1, the balance in the allowance for doubtful accounts was $24,000. For the year, Patty Pictures Partners made $2,560.000 of credit sales, wrote off $60,000 of accounts as uncollectible, and $784,000 remained outstanding at year-end. The following table is the aging schedule for these receivables. 31-90 days Days outstanding from involce date 0-30 days >90 days Total 600.000 Balance outstanding. December 31 Estimated default rate 120,000 64,000 784,000 1.25% 1.50% 4.50% O (Click the icon to view further information.) Required Requirement a. Record the journal entries relating to the factoring transaction. (Enter all the data into the journal entries before checking your work.) To start, we will record the factored amount of the receivable by recording the cash received and the holdback. Account Debit Credit Required Requirements a. Record the journal entries relating to the factoring transaction. b. Determine the amount of bad debts expense for the year. c. Show the journal entry to record bad debts expense for the year. d. Show the journal entry that was used to record write-offs for the year.

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