Question

Presented below is an aging schedule for Ivanhoe Company at December 31, 2021. Number of Days Past Due Not Yet Due Total Customer 1-30 31-60 Over 90 61-90 Aneesh $8,700 $15,000 Bird $ 23.700 27,900 53,500 $ 27,900 4.900 Cope 4.900 $43.700 DeSpears Others 38.500 $38,500 126,300 77,500 36,600 12,200 $269,900 $110,300 $50,200 $27,200 $43,700 $38,500 Estimated percentage uncollectible 3% 8% 12% 24% 61% Total estimated bad debts $44,562 $3,309 $4,016 $3,264 $10,488 $23,485 At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,900. Journalize the adjusting entry for bad debts at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Post the adjusting entry for bad debts at December 31, 2021. Bad Debts Expense Allowance for Doubtful Accounts

Answer 1

Estimated Bad debts Less: Unadjusted Credit Balance in Allowance for Doubtful accounts Adjustment Required 44,562 (7,900) 36,662 Debit Credit 36,662 Account Titles and Explanation Bad debts expense Allowance for doubtful accounts (to record the adjusting entry for bad debts) 36,662

2) 12/31 12/31 Bal Bad Debts Expense 36,662 36,662 Allowance for doubtful accounts 12/31 Bal 12/31 12/31 Bal 7,900 36,662 44,562

Debit Credit No (1) Date Mar.1 660 Account Titles Allowance for doubtful accounts Accounts receivable (to write off the uncollectible accounts) 660 May 1 Accounts receivable Allowance for doubtful accounts (to reinstate the account write-off) 660 May 1 Cash Accounts receivable (To record collection of write-off) 660

2021 Allowance for doubtful accounts 12/31 Bal 12/31 12/31 Bal 7,900 36,662 44,562 2022 03/01 660 05/01 660

$ 5) Estimated Bad debts Add: Unadjusted debit Balance in Allowance for Doubtful accounts Adjustment Required 37,400 1,200 38,600 Debit Credit 38,600 Account Titles and Explanation Bad debts expense Allowance for doubtful accounts |(to record the adjusting entry for bad debts) 38,600