Problem 3 (12 points) (1) The company Wood & Co. uses the balance sheet approach in...

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Problem 3 (12 points) (1) The company Wood & Co. uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a 10.000 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at 31 December 2021. This analysis disclosed the following information: Amount Aging group Not yet due 400.000 1-30 days past due 200.000 31-60 past due 60.000 0.5% 2.5% 8% (% considered incollectible) (a) Using the table above, calculate the appropriate balance for Wood & Co Allowance for doubtful accounts at 31 December 2021. (6 points) (b) Prepare the year-end adjusting entry for uncollectible accounts. (6 points) Problem 3 (12 points) (1) The company Wood & Co. uses the balance sheet approach in estimating uncollectible accounts expense. Its Allowance for Doubtful Accounts has a 10.000 credit balance prior to adjusting entries. It has just completed an aging analysis of accounts receivable at 31 December 2021. This analysis disclosed the following information: Amount Aging group Not yet due 400.000 1-30 days past due 200.000 31-60 past due 60.000 0.5% 2.5% 8% (% considered incollectible) (a) Using the table above, calculate the appropriate balance for Wood & Co Allowance for doubtful accounts at 31 December 2021. (6 points) (b) Prepare the year-end adjusting entry for uncollectible accounts. (6 points)