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On 1/1/19, the balance in Allowance for Doubtful Accounts: $ 22,000 Credit Record Journal Entries for a, b, & d below. Complete the table in part c. 1. a. Record the journal entry on 3/31/19 to write off the non-collection of the following accts: Jones $ 5,500 Wong $ 4,000 b. On 7/15/19, Jones Company calls to say they'd like to pay off their balance noted in a. above. Record the journal entries to record the REINSTATEMENT and the CASH RECEIPT of the balance. C. Estimate the required balance of the Allowance for Doubtful Accounts at Dec 31, using the aging of accounts receivable method. Calculate the targeted Dec 31 balance for Allowance for Doubtful Accounts. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $ 447,500 $ 295,000 $ 98,000 $ 42,000 $10,000 $ 2,500 % Uncollectible 3% 6% 10% 15% 60% Estimated Bad Debts d. Prepare the adjusting entry to record bad debts expense at Dec 31 using the 1/1 opening balance and the transactions shown in a), b) and c) above. SHOW WORK! HINT: Use a T-Acct Debit Credit Question 1 1 pts Allowance for Doubtful Accounts is a Liability account True False Question 2 1 pts The Allowance for Doubtful account has a normal side of CREDIT True False Question 3 1 pts Of the accounts "Over 120" days overdue, it is estimated that only $.40 of every dollar will eventually be collected? True False

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