Ch 8 problem - Problems ch 8 www.wiley.com/college/k immel P8-1C E-Z Time uses the allowance method to estimate uncollectible accounts receivable

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Problems: ch 8 www.wiley.com/college/k immel P8-1C E-Z Time uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. Number of Days Outstanding Total 0–30 31–60 61–90 91–120 Over 120 Accounts receivable $415,000 $238,000 $100,000 $44,000 $13,000 $20,000 % uncollectible 1.5% 3% 8% 10% 15% Estimated uncollectible accounts Instructions (a) Calculate the total estimated bad debts based on the above information. (b) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in (a). Assume the unadjusted balance in Allowance for Doubtful Accounts is a $5,400 debit. (c) Of the above accounts, $7,500 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (d) The company collects $2,000 subsequently on a specific account that had previously been determined to be uncollectible in (c). Prepare the journal entry(ies) necessary
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This document was uploaded on 11/02/2011 for the course ACCOUNTING ac 201 at Montgomery.

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Ch 8 problem - Problems ch 8 www.wiley.com/college/k immel P8-1C E-Z Time uses the allowance method to estimate uncollectible accounts receivable

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