if you could please explain that would be helpful! Daley Company estimates uncol
ID: 2397272 • Letter: I
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if you could please explain that would be helpful!
Daley Company estimates uncollectible accounts using the allowance method at December 31.It prepared the following aging of receivables analysis. Days Past Due Total 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable Percent uncollectible $630,000 $408,000 $102,000 $48,000 $30,00 $42,0ee 2% 1% 5% 7% 10% o. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $4,800 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,300 debit. Complete this question by entering your answers in the tabs below. Req A Req B and CExplanation / Answer
Estimated balance of Allowance: Age group Balance in AR Estimated Unrelisable Estimated Allowance 0 408000 1% 4080 1-30 days 102000 2% 2040 31-60 days 48000 5% 2400 61-90 days 30000 7% 2100 Over 90 42000 10% 4200 TOTAL 630000 14820 Req b: Estimated Allowance required: 14820 Less: Balance exist in Allowance 4800 Bad debts expense 10020 Journal entry: Bad debts expense Account Dr. 10020 Allowance for Doubtful accounts 10020 Req c: Estimated Allowance required: 14820 Add: Debit balance in Allowance 1300 Bad debts expense 16120 Journal entry: Bad debts expense Account Dr. 16120 Allowance for Doubtful accounts 16120
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