Milo Tindolini Co$.$ maintains an "allowance for doubtful accounts" which is A

charged when an accounts receivable are written off. As of January $1,2022$ Debit Credit

the allowance account had a credit balance of $$49,0005-$Jan

During January $2022$ the following bad$-$debt related activity occurred: $8-$Jan

$5-$Jan Wrote off balance due from NY Islanders Ltd$.$ $$4,45016-$Jan

$8-$Jan Wrote off balance due from LAMCO Ent. Inc., $$3,74020-$Jan

$16-$Jan Wrote off balance due from Weinstein Ltd$.,$ $$3,79025-$Jan

$20-$Jan Wrote off balance due from Trendmaker Mkt$.,$ $$980$

$25-$Jan Reinstated $$1,605$ of LAMCO Ent accounts receivable $29-$Jan

and recorded the collection on account.

$29-$Jan Wrote off balance due from NY Mets Inc. $$1,645$ B Allowance for doubtful accounts

$1-$Jan

For the month ended January $31,2022$ Milo reported sales of

$$2,325,000$ and provided the following analysis of accounts receivable:

Est. $\%$ not Aged Est. amount

Age intervals collectible Accts. Rec. not collectible

Current $1\mathrm{.}0\%$ $$1,231,000$ $$12,31031-$Jan

$1-30$ days $2\mathrm{.}5\%395,0009,875$

$31-60$ days $6\mathrm{.}0\%227,00013,620$

$61-90$ days $7\mathrm{.}0\%58,0004,060$

$90+$ days $25\mathrm{.}0\%20,5405,13531-$Jan C $-2$

Total estimated bad debts $$1,931,540$ $$45,000$

Required: C $-131-$Jan

A

Prepare the journal entries relative to the transactions from January $5$th

through January $29$th$.$

B

Prepare a $"$T$"$ account which reflects the activity and account balance for

"Allowance for Doubtful Accounts" up to and including January $31$st$.$ C $-3$

C

Assuming Milo uses the above aging for purposes of estimating Bad Debts

$1$ Prepare the required month$-$end adjustment for Bad Debts D Allowance for doubtful accounts

$1-$Jan

$2$ Calculate the post adjustment balance in "Allowance for doubtful

accounts"

$3$ Calculate the Expected realizable value of Accounts Receivable

as of January $31,2022$

D $31-$Jan

Assuming Milo uses the $\%$ of sales method for purposes of estimating Bad Debts

and $0\mathrm{.}5\%$ is the amount of sales deemed uncollectible:

$1$ Prepare the required month$-$end adjustment for Bad Debts $31-$Jan D $-2$

$2$ Calculate the post adjustment balance in "Allowance for doubtful D $-131-$Jan

accounts"

$3$ Calculate the Expected realizable value of Accounts Receivable

as of January $31,2022$

D $-3$