Problem 8-1A Sheffield Corp. uses the allowance method of accounting for bad debts. The company...
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Problem 8-1A Sheffield Corp. uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. Calculate the total estimated bad debts on the below information Total 408,000 0-30 $246,000 31-60 $90,000 Number of Days Outstanding 61-90 $42,000 91-120 $17,000 Over 120 $13,000 Accounts Receivable % uncollectible 1% 4% 5% 8% 1196 Estimated bad debts LINK TO TEXT VIDEO: SIMILAR PROBLEM Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,700 debit. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit LINK TO TEXT VIDEO: SIMILAR PROBLEM Of the above accounts, $5,500 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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