Question

P8-3A Presented below is an aging schedule for Halleran Company Journalize entria transactions rel debts. Worksheet.xls (LO 2) Home Insert Page Layout Formulas Data Reylew View P18 XLS A B C D E F G 1 Number of Days Past Due Not Yet Due 3 Customer Anders Blake 6 Total $ 22,000 40,000 57,000 1-30 31-60 61-90 Over 90 4 $10,000 $12,000 $ 40,000 16,000 Coulson 7 6,000 $35,000 Deleon Others 9 34,000 132,000 $285,000 $34,000 8 96,000 $152,000 16,000 $32,000 14,000 $26,000 6,000 $40,000 $35,000 Estimated 10 Percentage Uncollectible Total Estimated 3% 6 % 13% 25% 50% 11 Bad Debts $ 4,560 S 1,920 $ 3,380 $ 8,750 $ 38,610 $20,000 12 At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000. Instructions (a) Journalize and post the adjusting entry for bad debts at December 31, 2017 (b) Journalize and post to the allowance account the following events and transactions in the year 2018. (1) On March 31, a $1,000 customer balance originating in 2017 is judged uncollectible. (2) On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31. (a) Bad debt exp (c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $31,600. (c) Bad debt exs eae tbo allouonce mathod to actimato uncolloctiblo noaounto moooi

Answer 1

Answert that Given that . . (a) bad Journalize and post the adjusting entry for debh at December 31, 2017 Doubtful account required = 38160 Crebit balance - 12.000 12.000 38160 - [26.610] Debit. Date Account Title and explanation Bad debt. 26.610 Transaction Dec. 31, 2017 - exprense credit. Date / Account Title and aunt Title and explanation Allowancene Transaction 26,610. Dec 31, 2017 for houbtful Account

(b) (1) Journalize following - and event post and the allowance transaction account the the year 2018. from the 31, a { 1006 on march Customer. decired I Debit 11000 Transaction oate Account Tile and explanation March31 . Allowance for 2018 / Doubtfulaccount - Credit Account Tiland Date 1,000 Transaction explanation Account recevable march, 31 2018 Debit .. Date Accountiile and explanation 1000 Tran Sachon may 3le Allowance for Doubtful account credit 2018 Account Telepon dicono A count receviable I Date 1010 transaction May 31 2018

(b) en 1,006 recieved from the .. - On may slia check for . customer. The customer whose account was un collecitble. .. on march 31 Debil. Title Date Account Transaction and explanation 1000 Cash May 31 / : 2018 i Credit Date | Account Tile Transaction 1000 and explanation Accounts receivable May 31 . 2018 (c) * Journalize the adjusting entry for bad debit on December 31, 2018 * Assuming that un adjusting balance A Doubl ful account is a debit 800 * That total estimated bad debt will be 31,600

Required. 31600+800 = 32.400 Debit Date . Tron.saction A (count Tile and explanation Bad debt expense 32,400 Dec 31 . 2018 credit Date 1 3 21000 Transaction Account Tile and explanation Allowance for Doubtful accounts: Dec 31 -2018