The following selected information is from Richibucto Limited's partial aging schedule at year end:

The unadjusted balance in Allowance for Doubtful Accounts is a credit of $20,000.
Instructions
(a) Complete the aging schedule and calculate the total estimated uncollectible accounts from the above information.
(b) (1) Prepare the adjusting journal entry to record the bad debts using the information determined in part (a). (2) Would your journal entry be different if the unadjusted balance in Allowance for Doubtful Accounts were a debit of $20,000? 

(c) In the following year, $4,000 of the outstanding receivables is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible amount.
(d) Richibucto subsequently collects $1,700 of the $4,000 that was determined to be uncollectible in part (c). Prepare the journal entry(ies) to record the collection.
(e) Comment on how your answers in parts (a) to (d) would change if the company used a percentage of total accounts receivable of 6%, rather than aging the accounts.
(f) What are the advantages to the company of aging the accounts receivable rather than applying a percentage to total accounts receivable?

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Number of Days Outstanding 0-30 days 31-60 days 61-90 days Over 90 days Total Accounts Recetvable $240,000 120,000 100,000 60,000 Estimated Percentage Uncollectible 196 5% 10% 25%