Required:

a.Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020.

b.Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a).

AccountDebitCreditSales$1,740,000Accounts receivable$157,000Allowance for doubtful accounts3,200

M Snooze X Meet - X G When X Econor X Econor x Mi Inbox ( X Mi Inbox ( x Ill Grades X ] Assign x f (2) Fac x 4 Larson x Chapo X III McGra X Questic X Course X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.htm#/acti... Chapter 8 Graded Assignment i Saved Help Save & Exit Submit Check my work 8 Problem 8-7A Uncollectible accounts LO2, 3 10 Aaron Servicing showed the following partial unadjusted results at October 31, 2020, its year-end: points Account Debit Credit Sales $1 , 740, 000 Accounts receivable $157, 000 Allowance for doubtful accounts 3, 200 Print Part 1 References Required: a. Assuming Aaron estimates bad debts to be 1.5% of sales, prepare the adjusting entry at October 31, 2020. View transaction list Journal entry worksheet HillM Snooze X Meet - X G When X Econor X Econor x Mi Inbox ( X Mi Inbox ( x Ill Grades X ] Assign x f (2) Fac x 4 Larson x E Chapo X III McGra x Questic X Course X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.htm#/acti... Chapter 8 Graded Assignment i Saved Help Save & Exit Submit Check my work 8 b. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (a). Partial Balance Sheet Assets 10 points Current assets: Print References Part 2 Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at October 31, 20 View transaction list Journal entry worksheet Record the estimate for uncollectible accounts. Note: Enter debits before credits. Mc Graw M Snooze X Meet - X G When X Econor X Econor X Mi Inbox ( X Mi Inbox ( x Ill Grades X ] Assign x f (2) Fac x 4 Larson x _ Chap0 x Ill McGra X Questic X Course X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.htm#/acti... Chapter 8 Graded Assignment i Saved Help Save & Exit Submit Check my work 8 Part 2 Required: c. Instead of (a), assume that Aaron estimates bad debts to be 5% of outstanding accounts receivable. Prepare the adjusting entry at 10 October 31, 2020. points View transaction list Print Journal entry worksheet References 1 Record the estimate for uncollectible accounts. Note: Enter debits before credits. Date General Journal Debit Credit Oct 31, 2020 Record entry Clear entry View general journal d. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (c). Partial Balance Sheet Assets Mc Graw M Snooze X Meet - X G When X Econor X Econor x Mi Inbox ( X Mi Inbox ( x Ill Grades X ] Assign x f (2) Fac x 4 Larson x Chapo X III McGra X Questic X Course X + C a ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252Fmghmiddleware%252Fmheproducts%252FImsCloseWindow.htm#/acti... Chapter 8 Graded Assignment i Saved Help Save & Exit Submit Check my work 8 Note: Enter debits before credits. 10 Date General Journal Debit Credit points Oct 31, 2020 Print References Record entry Clear entry View general journal d. Show how accounts receivable would be shown on the October 31, 2020, balance sheet using your calculations in (c). Partial Balance Sheet Assets Current assets: Mc Graw Hill