Question

Complete the aging schedule for Emporia Company: Number of Days Past Due Customer Not Yet Total Due 1-30 3 1-60 61-90 Over 90 Anders $ 20,000 9,000 11,000 Baletto 30,000 30,000 Chong 50,000 15,000 5,000 30,000 DeLong 38,000 38,000 Others 126,000 92,000 15,000 13,000 6,000 $264.000 $137,000 $29,000 $24,000 $44.000 Estimated Percentage 2% 5% 10% 24% 50% Uncollectible Total Estimated Bad Debts died 357902740 1450 2400 7200 22000 At December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000; the balance in Bad Debts Expense is $0.35790. 000 = 27790 Instructions: 1 Journalize and post the adjusting entry for bad debts at December 31, 2019. Close the Bad Debts Expense account to the Income Summary account; then close Income Summary to Capital so Income Summary has a zero balance-closed). 2 Journalize and post to the accounts the following events and transactions in the 2020: ~March 1, DeLong's $38,000 balance originating two years prior is judged uncollectible, so write it off une 1. Bautista's $4,500 balance is deemed uncollectible, so write it off July 15, a check for $20,000 as partial payment of the $38,000 debt is received from DeLong ~November 17, you receive a check for $2,000 to settle Bautista's account; the other $2,500 will not be forthcoming ~December 1, Anders' $20,000 balance is deemed uncollectible December 1, Zeider's $8,000 balance is deemed uncollectible 3 At December 31, 2020, journalize the adjusting entry if $35,000 of A/R (aging process) may become uncollectible. Close the Bad Debts Expense account to the Income Summary account; then close Income Summary to Capital so Income Summary has a zero balance-closed). Check figures: December 31, 2020: Bad Debts Expense balance, $o Allowance for Doubtful Accounts balance, $35,000

I can't figure out what I did wrong. I'm not getting the 35,000. Please help

Answer 1

Part 1

	Accounts receivable	Percentage uncollectable	Estimated bad debts
Not due	$        137,000	2%	$          2,740
1 to 30	$          29,000	5%	$          1,450
31 to 60	$          24,000	10%	$          2,400
61 to 90	$          30,000	24%	$          7,200
Over 90	$          44,000	50%	$        22,000
Adjusted balance in allowance of doubtful account			$        35,790
Adjusted balance in allowance of doubtful account			$        35,790
Less: Unadjusted balance in allowance of doubtful account			$          8,000
Adjusting entry for Bad debt expense			$        27,790

Adjusting entry
Date	General Journal	Debit	Credit
Dec 31, 2019	Bad debt expense	$        27,790
	Allowance for Doubtful Accounts		$ 27,790
	To record bad debts expense.
Closing entries
Date	General Journal	Debit	Credit
Dec 31, 2019	Income summary	$        27,790
	Bad debt expense		$ 27,790
	To close the bad debt expense.
Dec 31, 2019	Owner's capital	$        27,790
	Income summary		$ 27,790
	To close the income summary to capital account.

Part 2

Journal entries
Date	General Journal	Debit	Credit
March 1	Allowance for Doubtful Accounts	$ 38,000
	Accounts receivable		$ 38,000
	To record Delong account write off.
June 1	Allowance for Doubtful Accounts	$    4,500
	Accounts receivable		$    4,500
	To record Bautista account write off.
June 15	Accounts receivable	$ 20,000
	Allowance for Doubtful Accounts		$ 20,000
	To record account reinstated.
	Cash	$ 20,000
	Accounts receivable		$ 20,000
	To record Cash received.
Nov 17	Accounts receivable	$    2,000
	Allowance for Doubtful Accounts		$    2,000
	To record account reinstated.
	Cash	$    2,000
	Accounts receivable		$    2,000
	To record Cash received.
Dec 1	Allowance for Doubtful Accounts	$ 20,000
	Accounts receivable		$ 20,000
	To record Anders account write off.
Dec 1	Allowance for Doubtful Accounts	$    8,000
	Accounts receivable		$    8,000
	To record Zelder account write off.

Part 3

Unadjusted balance in allowance of doubtful account			$ 27,790
Add: Adjusting entry for Bad debt expense			$    8,000
Balance in allowance of doubtful account			$ 35,790
Allowance for Doubtful Accounts
	Debit	Credit
March 1	$        38,000	$ 35,790	Jan 1, Balance
June 1	$          4,500	$ 20,000	June 15
Dec 1	$        20,000	$    2,000	Nov 17
Dec 1	$          8,000
Dec 31, Unadj. Bal.	$        12,710	$ 47,710	Dec 31, Adj. entry
		$ 35,000	Dec 31, Balance
Adjusted balance in allowance of doubtful account			$ 35,000
Add: Unadjusted Debit balance in allowance of doubtful account (debit balance requires to further provision.)			$ 12,710
Adjusting entry for Bad debt expense			$ 47,710

Adjusting entry
Date	General Journal	Debit	Credit
Dec 31, 2020	Bad debt expense	$ 47,710
	Allowance for Doubtful Accounts		$ 47,710
	To record bad debts expense.
Closing entries
Date	General Journal	Debit	Credit
Dec 31, 2020	Income summary	$ 47,710
	Bad debt expense		$ 47,710
	To close the bad debt expense.
Dec 31, 2020	Owner's capital	$ 47,710
	Income summary		$ 47,710
	To close the income summary to capital account.