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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	$	620,000		$	406,000			$	100,000			$	46,000			$	28,000			$	40,000
Percent uncollectible					2				3				6				8				11

1:

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 $4,600 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 $1,100 debit.

2:

a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables 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 $13,000 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 $2,000 debit.

Following is a list of credit customers along with their amounts owed due and the days past due at December 31. Following that list are five classifications of accounts receivable and estimated bad debts percent for each class.

	Days Past Due
	0			1 to 30				31 to 60				61 to 90				Over 90
Percent uncollectible		1	%			3	%			5	%			8	%			12	%

Customer	Accounts Receivable			Days Past Due
BCC Company	$	4,700			16
Lannister Co.		1,700			0
Mike Properties		5,700			110
Ted Reeves		850			73
Jen Steffens		2,700			35

1. Create an aging of accounts receivable schedule of accounts receivable by age similar to the table given above. Calculate the estimated balance for the Allowance for Doubtful Accounts.

2. Assuming an unadjusted credit balance of $170, record the required adjustment to the Allowance for Doubtful Accounts.

At December 31, Folgeys Coffee Company reports the following results for its calendar year.

Cash sales	$	916,000
Credit sales		316,000

Its year-end unadjusted trial balance includes the following items.

Accounts receivable	$	141,000	debit
Allowance for doubtful accounts		6,600	debit

Prepare the adjusting entry to record bad debts expense assuming uncollectibles are estimated to be (1) 3% of credit sales, (2) 1% of total sales and (3) 6% of year-end accounts receivable.

Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. Accounts Receivable Percent Uncollectible (%) Not due: 1 to 30: X = 31 to 60: X 61 to 90: X Over 90: X Estimated balance of allowance for uncollectibles Journal entry worksheet 1 2 Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $1,100 debit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. Estimated balance of allowance for uncollectibles Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,000 credit balance. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Journal entry worksheet Record Bad Debts Expense assuming uncollectibles are estimated to be 1% of total sales. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Journal entry worksheet

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