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.

Costco wholesale corporation operates membership warehouses selling food, appliances, consumer electronics, apparel and other household goods at 471 locations across the u.s. as well as in canada, mexico and puerto rico. as of its fiscal year-end 2005, costco had approximately 21.2 million members. selected fiscal-year information from the company's balance sheets follows. ($ millions). selected balance sheet data 2005 2004 merchandise inventories $4,015 $3,644 deferred membership income (liability) 501 454 (a) during fiscal 2005, costco collected $1,120 cash for membership fees. use the financial statement effectstemplate to record the cash collected for membership fees. (b) in 2005, costco recorded $46,347 million in merchandise costs (that is, cost of goods sold). record thistransaction in the financial statement effects template. (c) determine the value of merchandise that costco purchased during fiscal-year 2005. use the financial statementeffects template to record these merchandise purchases. assume all of costco's purchases are on credit.