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Xercise Cycles Company sells exercise equipment to gyms on account. At year end, the following accounts receivable were uncollected.
Required:
1) Calculate the number of days unpaid, using the Excel DAYS function.
Customer	Amount	Invoice Date	Today's Date	Number of Days Unpaid
Fitness Mania	$2,500	6/17/2022	12/31/2022
Health for Life	1,900	12/21/2022	12/31/2022
Holistic Health Options	12,750	10/12/2022	12/31/2022
Image Reimaging	7,000	12/5/2022	12/31/2022
Today's Gym World	4,600	11/29/2022	12/31/2022
Whole Life Fitness Center	15,900	11/20/2022	12/31/2022
Workouts Unlimited	3,800	10/2/2022	12/31/2022
Total	$48,450
2) Use the information above to complete the Aging of Accounts Receivable Schedule below.
Create a formula for each age category, using the Excel IF function to determine where each customer amount belongs.
Calculate each "Total" cell by using the Excel SUM function and include all possible cells. Leave no cells blank.
HINT: Use the =AND function to check for date ranges. For example, =IF(AND(E8>30,E8<=60),[VALUE IF TRUE],[VALUE IF FALSE]))
	Number of Days Unpaid
Customer	0-30	31-60	61-90	Over 90	Total
Fitness Mania
Health for Life
Holistic Health Options
Image Reimaging
Today's Gym World
Whole Life Fitness Center
Workouts Unlimited
Total Accounts Receivable
Estimated Uncollectible( %)	2%	10%	25%	45%
Estimated Uncollectible ($)
3) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Allowance for Doubtful Accounts	$250	credit balance
Bad Debt Expense
Allowance for Doubtful Accounts
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Allowance for Doubtful Accounts	$100	debit balance
Bad Debt Expense
Allowance for Doubtful Accounts