Savod Help Save & Daley Company estimates uncollectible accounts using the allow

Question

Savod Help Save & Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $588,000 $398,009 $92,000 $38,000 $20,00e $32,000 Percent 3% 4% 7% 9% 12% uncollectible a. 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 $3,800 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 $300 debit. Complete this question by entering your answers in the tabs below. Req AReq B and C Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using the aging of accounts receivable method.

Explanation / Answer

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a. Accounts Receivables % Uncollectible Not due 398000 * 3% = 11940 1-30 92000 * 4% = 3680 31-60 38000 * 7% = 2660 61-90 20000 * 9% = 1800 Over 90 32000 * 12% = 3840 580000 23920 Estimated balance of allowance for uncollectibles 23920

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