Bonita Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis. ???DaysPastDue??TotalCurrent1 to 3031 to 6061 to 90Over 90Accounts receivable$110,00068,00017,00010,0008,0007,000Percent uncollectible?1%2%5%8%13%a. Estimate the balance of the Allowance for Doubtful Accounts using the aging of accounts receivable 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 $550 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 $300 debit.
What will be an ideal response?
| a. | Total | Current | 1 to 30 | 31 to 60 | 61 to 90 | Over 90 |
| Accounts receivable | $110,000 | 68,000 | 17,000 | 10,000 | 8,000 | 7,000 |
| Percent uncollectible | ? | 1% | 2% | 5% | 8% | 13% |
| Estimated uncollectible | 3,070 | 680 | 340 | 500 | 640 | 910 |
| b. | Bad Debts Expense | 2,520 | ? |
| ? | Allowance for doubtful accounts | ? | 2,520 |
| c. | Bad Debts Expense | 3,370 | ? |
| ? | Allowance for doubtful accounts | ? | 3,370 |
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