Question

# Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total...

Daley Company prepared the following aging of receivables analysis at December 31.

 Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable \$ 595,000 \$ 401,000 \$ 95,000 \$ 41,000 \$ 23,000 \$ 35,000 Percent uncollectible 3 % 4 % 7 % 9 % 12 %

a.
Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable.
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 \$4,100 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 \$600 debit.

 Accounts receivable Percent uncollectible (%) Amount Not due 401000 3% 12030 1 to 30: 95000 4% 3800 31 to 60: 41000 7% 2870 61 to 90: 23000 9% 2070 Over 90: 35000 12% 4200 Estimated balance of allowance for uncollectibles 24970 Credit
 b Debit Credit Dec 31 Bad debts expense 20870 =24970-4100 Allowance for doubtful accounts 20870 c Debit Credit Dec 31 Bad debts expense 25570 =24970+600 Allowance for doubtful accounts 25570

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