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Instructions Cowen's, a large department store located in a metropolitan area, has been experiencing difficulty in estimating its bad debts. The company has decided to prepare an aging schedule for its outstanding accounts receivable and estimate bad debts by the due dates of its receivables. This analysis discloses the following information: Balance Age of Receivable Estimated Percentage Uncollectible $195,000 Under 30 days 112,000 30-60 days 73,000 61-120 days 41,000 121-240 days 25,000 241-360 days 19,000 Over 360 days $465,000 0.8% 2.0% 5.0% 20.0% 35.0% 60.0% Required: 1. Use the preceding analysis to compute the estimated amount of uncollectible receivables. 2. Prepare the journal entry to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtful Accounts prior to adjustment is A. 0 B. $3,100 (debit) C. $2,500 (credit) Prepare the journal entry on June 30 to record Cowen's estimated uncollectibles, assuming the balance in Allowance for Doubtfut Accounts prior to adjustment is so. Addtional Instruction NGE 9 GENERAL JOURNAL POST REF DEBIT CREDIT DATE ACCOUNT TITLE Prepare the journal entry on June 30 to record Cowens estimated uncollectibles, assuming the balance in Alowance for Doubtful Accounts prior to adjustment is a $3,100 debit. Additional Instruction PAGE 9 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT Prepare the journal entry on June 30 to record Cowen's estimated uncollectibles assuming the balance in Allowance for Doubtfu Accounts prior to adjustment is a s2,500 credit. Addlitional Instruction RAGE GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT