A partially completed aging of receivables schedule for Torme Designs follows: a. Determine the amount estimated to be uncollectible by completing the aging of receivables schedule.
Estimate of Uncollectible Accounts Age Interval Balance Percentage Amount Not past due $850,000 3.50% 1 1-30 days past due 47,500 5.00% 2 31-60 days past due 21,750 10.00% 3 61-90 days past due 11,250 20.00% 4 91-180 days past due 5,060 30.00% 5 181-365 days past due 2,500 50.00% 6 Over 365 days past due 1,140 95.00% 7 Total $939,200
b. If the Allowance for Doubtful Accounts has a credit balance of $1,135, record the adjusting entry for the bad debt expense for the year.

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.