Question

Presented below is an aging schedule for Sweet Acacia Industries at December 31, 2021.

Presented below is an aging schedule for Sweet Acacia Industries at December 31, 2021. Number of Days Past Due Not Yet Due Customer Total 1 -30 Over 90 31-60 61-90 Aneesh $ 23,900 $ 8,100 $15,800 Bird 28,200 $ 28,200 Cope 49,500 4,500 5,100 $39,900 DeSpears Others 37,300 $37,300 127,700 76,000 38,100 13,600 $266,600 $108,700 $51,300 $29,400 $39,900 $37,300 Estimated percentage uncollectible 3% 7% 12% 25% 63% Total estimated bad debts $43,854 $3,261 $3,591 $3,528 $9,975 $23,499 At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,600, & Your answer is partially correct. 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.) Amount Titles and Fynlanation nohit Credit

Answer 1

1)	Account titles and Explanation				Debit	Credit
31-Dec	Bad debts expense				35254
	allowance for uncollectible accounts					35,254
		Bad debts expense
	31-Dec	35254
	End bal	35254
		Allowance for dountful accounts
			op bal	8,600
			31-Dec	35254
			End bal	43,854
1)	Account titles and Explanation				Debit	Credit
1-Mar	Allowance for doubtful accounts				630
	Account receivable					630
1-May	Accounts receivable				630
	Allowance for doubtful accounts					630
	Cash				630
	Account receivable					630
		Allowance for dountful accounts
	2021		12/31/bal	8,600
			31-Dec	35254
			12/31/bal	43,854
	2022
	1-Mar	630	1-May	630
	Account titles and Explanation				Debit	Credit
	Bad debts expense				37700
	allowance for uncollectible accounts					37,700