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Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 01 to 3031 to 6061 to 90Over 90 Accounts receivable$570,000 $396,000 $90,000 $36,000 $18,000 $30,000 Percent uncollectible 1% 2% 5% 7% 10% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4.5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. 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 $12,000 credit. 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 $1,000 debit.
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Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Tot...
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