Carter company sells on credit with terms of n/30. for the $500,000 of accounts at the end of the year that are not overdue, there is a 90% probability of collection. for the $200,000 of accounts that are less than a month past due, carter estimates the likelihood of collection going down to 70%. the probability of collecting the $100,000 of accounts more than a month past due is estimated to be 25%. required: 1. prepare an aging schedule to estimate the amount of uncollectible accounts. 2. on the basis of the schedule in part (1), prepare the journal entry at the end of the year to esti- mate bad debts. assume that the credit balance in allowance for doubtful accounts is $20,000.

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.