Reference no: EM132506691

Starlight, a Broadway media ?rm, uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the accounts receivable produced the following five groupings

During 2019                                % considered uncollectible                           Estimated Uncollectible Accounts

Not yet due                                  $400,000                                                       1%

1-30 days past due                         100,000                                                          2%

31-60 days past due                         50,000                                                            12%

61-90 days past due                             20,000                                                        15%

Over 90 days past due                              70,000                                                     60%

Total                                                          $640,000

Question a) Compute the estimated amount of uncollectible accounts based on the above classi?cation by age groups. Show your calculations in the table. Fill the table 

Question b) Prepare the journal entries for Straight On December 31, 2019 the credit manager of Starlight analyzes the accounts receivables and estimates that $70,000 of these accounts will prove uncollectible.

Question c) Assume that on January 18 of 2020, Straight learned that an account receivable that had originated on August 2019 in the amount of $1500 was worthless because of the bankruptcy of the client, May Flowers. 

Question d) Suppose May Flowers, manages to pay $500 on March 1 of 2020.