View the step-by-step solution to:

Exercise 9-7 Percent of receivables method L. P2 Hecter Company estimates uncollectible accounts using the allowance method at December 31. It...

Exercise 9-7 Percent of receivables method L.O. P2
Hecter Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. Days Past Due


Total 0 1 to 30 31 to 60 61 to 90 Over 90
Accounts receivable $ 190,000 $ 132,000 $ 30,000 $ 12,000 $ 6,000 $ 10,000
Percent uncollectible 1 % 2 % 4 % 7 % 12 %
a.
Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 3.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. (Omit the "$" sign in your response.)
b.
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $300 credit. (Omit the "$" sign in your response.)
c.
Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $200 debit. (Omit the "$" sign in your response.)

Sign up to view the entire interaction

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question