Problem $9-2$B

Estimating and reporting bad debts

P$2$ P$3$

At December $31,$ Ingleton Company reports the following results for the year.

$\backslash$table$[[$Cash sales.,$$1,025,000,$Credit sales,$$1,342,000]]$

In addition, its unadjusted trial balance includes the following items.

Accounts receivable....... $$575,000$ debit $,$ Allowance for doubtful accounts dots.,$$7,500$ credit

Required

Prepare the adjusting entry to record bad debts under each separate assumption.

a$.$ Bad debts are estimated to be $2\mathrm{.}5\%$ of credit sales.

b$.$ Bad debts are estimated to be $1\mathrm{.}5\%$ of total sales.

c$.$ An aging analysis estimates that $6\%$ of year$-$end accounts receivable are uncollectible.

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet given the facts in part $1a.$

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet given the facts in part $1c.$

Check Dr$.$ Bad Debts Expense: $(1$b$)$ $$35,505,(1$c$)$ $$27,000$

Problem $9-2$B

Estimating and reporting bad debts

P$2$ P$3$

At December $31,$ Ingleton Company reports the following results for the year.

$\backslash$table$[[$Cash sales.,$$1,025,000,$Credit sales,$$1,342,000]]$

In addition, its unadjusted trial balance includes the following items.

Accounts receivable....... $$575,000$ debit $,$ Allowance for doubtful accounts dots.,$$7,500$ credit

Required

Prepare the adjusting entry to record bad debts under each separate assumption.

a$.$ Bad debts are estimated to be $2\mathrm{.}5\%$ of credit sales.

b$.$ Bad debts are estimated to be $1\mathrm{.}5\%$ of total sales.

c$.$ An aging analysis estimates that $6\%$ of year$-$end accounts receivable are uncollectible.

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet given the facts in part $1a.$

Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet given the facts in part $1c.$

Check Dr$.$ Bad Debts Expense: $(1$b$)$ $$35,505,(1$c$)$ $$27,000$

Problem $9-2$B $$ Estimating and Reporting Bad Debts. Please prepare all requireds.

Put it into a excel sheet