Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Age Group Balance Probability of Noncollection 0–30 days past due $90,000 1% 31–60 days past due 20,000 2% 61–120 days past due 11,000 5% 121–180 days past due 6,000 10% Over 180 days past due 6,000 25% $133,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $820 on December 31, before any adjustments. Prepare the adjusting entry for estimated credit losses on December 31. Prepare the journal entry to write off the Rose Company’s account on April 10 of the following year in the amount of $650.

Journal entry shown in description.

Explanation:

According to the scenario, the computation can be done as follows:

First we calculate the noncollectable amount of the company for each period :

0-30 days= $90000 × 1% = $900

31-60 days =$20000 × 2%  = $400

60-120 days = $11000 × 5% = $550

121-180 days = $6000 × 10% = $600

Over 181 days = $6000 × 25% = $1500

So, total noncollectable amount is = $3,950

So Journal entry of the following can be done as:

a. Journal for estimated credit loss:

Date          Particulars                       Debit                       Credit

Dec 31   Bad debt expense(3910-820)$3,130  

                Allowance for doubtful account                                  $3,130

b.  The journal entry to write off the Rose Company’s account

Date         Particulars                        Debit                Credit

April 10Allowance for doubtful accounts $650  

               Accounts receivable                                                $650

answer; ///the correct answer is (ftc) federal trade commission;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.