Sequential,Inc Total Credit Sales for the Year Ended December 31,20X3,were $825,000

question 26

Essay

Sequential,Inc.has the following information available as of December 31,20X3:
$\begin{array}{ll}\text { Total } \\\text { Accounts } & 1-30 & 31-60& 61-90& \text { Over 90}\\\text { Receivable } & \text { Days } & \text { Days }& \text { Days }& \text { Days }\\\$ 60.000 & \$ 46500& \$ 7400& \$3700& \$ 2400\end{array}$ Total credit sales for the year ended December 31,20X3,were $825,000.
The balance in the Allowance for Uncollectible Accounts at December 31,20X3,is a $500 debit.
The estimated bad debts percentages are as follows:
as a percentage of credit sales 1%
as a percentage of ending accounts receivable 10%
as a percentage of aging accounts receivable:
$\begin{array}{ll}1-30 \text { days } & 3 \% \\31-60 \text { days } & 15 \% \\61-90 \text { days } & 35 \% \\\text { Over } 90 \text { days } & 75 \%\end{array}$
Given the previous information,prepare the journal entry on December 31,20X3,to estimate bad debts under the allowance method using the
a.percentage of credit sales method.
b.percentage of ending accounts receivable method.
c.aging of accounts receivable method.

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Definitions:

Voltage Drop

The reduction in electrical voltage as it passes through a component or conductor, due to resistance or impedance in the circuit.

Low Current Draw

The condition of an electrical device consuming a relatively small amount of electrical current.

Viscosity

The sheer resistance of a liquid often used to mean oil thickness or resistance to flow.

Ground Circuit

An electrical circuit that uses the earth as a part of its conductive path, enhancing safety by preventing electric shock.