a. complete the table below to calculate the estimated balance of allowance for doubtful accounts using…

a. complete the table below to calculate the estimated balance of allowance for doubtful accounts using aging of accounts receivable.\nb. 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.\nc. 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.\ncomplete this question by entering your answers in the tabs below.\nreq a\nreq b and c\ncomplete the table below to calculate the estimated balance of allowance for doubtful accounts using aging of accounts receivable.
Answer
Explanation:
Step1: Calculate estimated uncollectible for each category
For each row in the table, multiply the Accounts Receivable amount by the Percent Uncollectible (%) to get the Estimated Uncollectible amount. For example, if Accounts Receivable for "Not due" is $A$ and Percent Uncollectible is $p%$, then Estimated Uncollectible = $A\times\frac{p}{100}$. Do this for all rows: 1 - 30 days, 31 - 60 days, 61 - 90 days, and Over 90 days.
Step2: Sum up estimated uncollectible amounts
Add up the Estimated Uncollectible amounts from all the categories to find the Estimated balance of allowance for uncollectibles. Let the amounts for each category be $x_1,x_2,x_3,x_4,x_5$. Then the Estimated balance of allowance for uncollectibles = $x_1 + x_2+x_3+x_4+x_5$.
Step3: Prepare adjusting entry for credit unadjusted balance
If the unadjusted balance in Allowance for Doubtful Accounts is a $4100$ credit and the estimated balance of allowance for uncollectibles from Step 2 is $E$, the bad - debts expense amount for the adjusting entry is $E - 4100$ (if $E>4100$) or $4100 - E$ (if $E < 4100$). The adjusting entry is: Debit: Bad Debts Expense Credit: Allowance for Doubtful Accounts
Step4: Prepare adjusting entry for debit unadjusted balance
If the unadjusted balance in Allowance for Doubtful Accounts is a $600$ debit and the estimated balance of allowance for uncollectibles from Step 2 is $E$, the bad - debts expense amount for the adjusting entry is $E+600$. The adjusting entry is: Debit: Bad Debts Expense Credit: Allowance for Doubtful Accounts
Since the actual Accounts Receivable and Percent Uncollectible values are not given in the problem statement, we can't provide numerical answers. But the steps for solving are as above.
Answer:
a. Fill in the table by multiplying Accounts Receivable by Percent Uncollectible for each category and sum up the results for the final estimated balance of allowance for uncollectibles. b. Debit Bad Debts Expense and Credit Allowance for Doubtful Accounts with the calculated amount (Estimated balance of allowance for uncollectibles - 4100). c. Debit Bad Debts Expense and Credit Allowance for Doubtful Accounts with the calculated amount (Estimated balance of allowance for uncollectibles + 600).