Question & Answer: The accounts of Loring Company provided the following 20×8 information at December 31, 20×8 (end of the annual period) Accounts Receivable bala…..

The accounts of Loring Company provided the following 20×8 information at December 31, 20×8 (end of the annual period) Accounts Receivable balance, January 1, 20×8 Allowance for doubtful accounts balance, January 1, 20×8 Total sales revenue during 20×8 (1/6 on credit) Uncollectible account to be written off during 20×8 Cash collected on accounts receivable during 20×8 $ 51,000 3,000 960,000 1,000 170,000 Estimates of bad debt losses a. Based on credit sales, 1% b. Based on ending balance of accounts receivable, 8% c. Based on aging schedule Accounts Receivable Probability of Noncollection 2% 10% 30% 60% Age Less than 30 days 31-90 day:s 91-120 days More than 120 days $28,000 7,000 3,000 2,000 Required: (i) Give all necessary journal entries to record bad debt expense and write-offs under the three methods (ii) Show the Accounts Receivable (Net) in the 20×8 balance sheet under all three methods (iii) Give the required entry if the customer whose account was written off ($1,000) paid his long-overdue account in full on March 1, 20×9