(A) the Aging of Torme Designs' Accounts Receivable Is Shown

question 94

Essay

(a) The aging of Torme Designs' accounts receivable is shown below. Calculate the amount of each periodicity range that is deemed to be uncollectible.?? $$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { Estimated Uncollectible Accounts } } \\\begin{array} { | l | r | c | c | } \hline \text { Age Interval } & \text { Balance } & \text { Percentage } & \text { Amount } \\\hline \text { Not past due } & \$ 850,000 & 3.50 \% & \\\hline 1 - 30 \text { days past due } & 47,500 & 5.00 & \\\hline 31 - 60 \text { days past due } & 21,750 & 10.00 & \\\hline 61 - 90 \text { days past due } & 11,250 & 20.00 & \\\hline 91 - 180 \text { days past due } & 5,065 & 30.00 & \\\hline 181 - 365 \text { days past due } & 2,500 & 50.00 & \\\hline \text { Over } 365 \text { days past due } & \underline{1,145} & 95.00 & \\\hline \text { Total } & \underline{\mathbf { \$939,210 }} & & \\\hline\end{array}$$ (b) If Allowance for Doubtful Accounts has a credit balance of $1,135.00, record the adjusting entry forthe bad debt expense for the year.

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Definitions:

Civil Penalties

Financial charges, fines, or penalties imposed by governmental agencies as punishment for violating certain laws or regulations, not constituting criminal punishment.

Unauthorized Worker

An individual who is employed without the legal right to work in the jurisdiction or under conditions that violate employment laws.

Hiring of Foreign Workers

The process of employing individuals from countries other than the one where the business operates, often involving specific legal and regulatory considerations.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in the workplace or educational settings.