the following information applies to the questions displayed below. daley company prepared the following…

the following information applies to the questions displayed below. daley company prepared the following aging of receivables analysis at december 31. \n| | total | days past due | | | | |\n|--|--|--|--|--|--|--|--|\n| | | 0 | 1 to 30 | 31 to 60 | 61 to 90 | over 90 |\n| accounts receivable | $630,000 | $408,000 | $102,000 | $48,000 | $30,000 | $42,000 |\n| percent uncollectible | | 1% | 2% | 5% | 7% | 10% |\n\na. 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 $4,800 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 $1,300 debit.\n\ncomplete this question by entering your answers in the tabs below.\n| req a | req b and c |\n|--|--|\n\ncomplete the table below to calculate the estimated balance of allowance for doubtful accounts using aging of accounts receivable.\n| accounts receivable | percent uncollectible (%) | estimated uncollectible |\n|--|--|--|\n| not due: | x | = |\n| 1 to 30 | x | = |

the following information applies to the questions displayed below. daley company prepared the following aging of receivables analysis at december 31. \n| | total | days past due | | | | |\n|--|--|--|--|--|--|--|--|\n| | | 0 | 1 to 30 | 31 to 60 | 61 to 90 | over 90 |\n| accounts receivable | $630,000 | $408,000 | $102,000 | $48,000 | $30,000 | $42,000 |\n| percent uncollectible | | 1% | 2% | 5% | 7% | 10% |\n\na. 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 $4,800 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 $1,300 debit.\n\ncomplete this question by entering your answers in the tabs below.\n| req a | req b and c |\n|--|--|\n\ncomplete the table below to calculate the estimated balance of allowance for doubtful accounts using aging of accounts receivable.\n| accounts receivable | percent uncollectible (%) | estimated uncollectible |\n|--|--|--|\n| not due: | x | = |\n| 1 to 30 | x | = |

Answer

Explanation:

Step1: Calculate estimated uncollectible for each category

For 0 days past - due: $408000\times0.01 = 4080$ For 1 - 30 days past - due: $102000\times0.02=2040$ For 31 - 60 days past - due: $48000\times0.05 = 2400$ For 61 - 90 days past - due: $30000\times0.07=2100$ For over 90 days past - due: $42000\times0.10 = 4200$

Step2: Sum up estimated uncollectible amounts

$4080 + 2040+2400 + 2100+4200=14820$

a.

Accounts Receivable Percent Uncollectible (%) Estimated Uncollectible
$408000$ (0 days past - due) $1$ $4080$
$102000$ (1 - 30 days past - due) $2$ $2040$
$48000$ (31 - 60 days past - due) $5$ $2400$
$30000$ (61 - 90 days past - due) $7$ $2100$
$42000$ (over 90 days past - due) $10$ $4200$
Total $14820$

b.

The unadjusted balance in the Allowance for Doubtful Accounts is a $4800$ credit. The adjusting entry amount for bad - debts expense is $14820−4800 = 10020$ Debit: Bad Debts Expense $10020$ Credit: Allowance for Doubtful Accounts $10020$

c.

The unadjusted balance in the Allowance for Doubtful Accounts is a $1300$ debit. The adjusting entry amount for bad - debts expense is $14820 + 1300=16120$ Debit: Bad Debts Expense $16120$ Credit: Allowance for Doubtful Accounts $16120$

Answer:

a. See the table above. b. Debit: Bad Debts Expense $10020$, Credit: Allowance for Doubtful Accounts $10020$ c. Debit: Bad Debts Expense $16120$, Credit: Allowance for Doubtful Accounts $16120$