Canyon Canoe Company has year to date credit sales of $15,500. A review of the outstanding receivable resulted in the following aging schedule Customer1-30 days31-60 days61-90 daysOver 90days Total Canyon Youth Club$ 250250 Crazy Tees200150350 Early Start Daycare500500 Lakefront Pavilion575575 Outdoor Center300300 Rivers Canoe Club350350 Sport Shirts450120570 Zack's Marina7575225 Totals$ 1900$ 345$ 375$ 500$ 3,120 Assume a zero-beginning balance for Allowance for Doubtful Accounts. Round to the nearest dollar. Determine the estimated bad debt expense under the following methods. Req. 1 1a. Percent-of-sales method: 4.5% of credit sales
1b. Percent-of-accounts-receivable method: 22.5% 1c. Aging-of-accounts-receivable method: Age of Accounts as of June 30, 2021 Customer Name 1-30Days31-60Days61-90DaysOver 90DaysTotal Balance Totals1,9003453755003120 Estimated percent uncollectible5%20%40%75% Allowance for doubtful accounts Target Balance = Requirement 2 - Journalize the entry at June 30, 2021, to adjust for bad debt expense using the percent-of-sales method. Requirement 3 - Journalize the entry at June 30, 2021, to record the write-off of the Early Start Daycare invoice.
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