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Buffalo Industries uses the allowance method of accounting for bad debts. The company produced the following...

Buffalo Industries uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end.

1.Calculate the total estimated bad debts based on the information below.

# of days outstanding total 0-30 31-60 61-90 91-120 over 120
Accounts receivable $ 422,000 259,000 82,000 44,000 24,000 13,000
% uncollectible 1% 4% 5% 8% 11%
Estimated debt

2.Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $3,900 debit.

3.Of the above accounts, $4,700 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.

4.The company collects $4,700 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection.

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