Question

Question 4 Presented below is an aging schedule for Bridgeport plc. Number of Days Past Due Customer Total Not Yet Due 1–30 31–60 61–90 Over 90 Anders $ 30,800 $13,900 $16,900 Blake 43,300 $ 43,300 Cyrs 58,000 16,200 6,400 $35,400 De Jong 34,900 $34,900 Others 137,200 98,900 17,200 14,300 6,800 $304,200 $158,400 $37,500 $31,200 $35,400 $41,700 Estimated percentage uncollectible 1% 5% 15% 26% 62% Total estimated bad debts $ 43,197 $ 1,584 $ 1,875 $ 4,680 $ 9,204 $25,854 At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $9,351.

Journalize and post the adjusting entry for bad debts at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Bad Debt Expense Date Explanation Ref Debit Credit Balance Dec. 31 Adjusting Allowance for Doubtful Accounts Date Explanation Ref Debit Credit Balance Dec. 31 Balance Dec. 31 Adjusting

Journalize and post to the allowance account the following events and transactions in the year 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) March 1, a $1,230 customer balance originating in 2017 is judged uncollectible. (2) May 1, a check for $1,230 is received from the customer whose account was written off as uncollectible on March 31. No. Date Account Titles and Explanation Debit Credit (1) Mar. 1May 1 (2) Mar. 1May 1 (To record recovery of bad debts). Mar. 1May 1 (To record amount received). Allowance for Doubtful Accounts Date Explanation Ref Debit Credit Balance 2017 Dec. 31 Balance 9,351 Dec. 31 Adjusting 33,846 43,197 2018 Mar. 1May 1 Mar. 1May 1

Journalize the adjusting entry for bad debts on December 31, 2018. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $900 and the aging schedule indicates that total estimated bad debts will be $32,900. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31

Answer 1

1)	Account titles and Explanation				Debit	Credit
31-Dec	Bad debts expense				33846
	allowance for uncollectible accounts					33,846
		Bad debts expense
	31-Dec	33846
	End bal	33846
		Allowance for dountful accounts
			op bal	9,351
			31-Dec	33846
			End bal	43,197
1)	Account titles and Explanation				Debit	Credit
1-Mar	Allowance for doubtful accounts				1230
	Account receivable					1230
1-May	Accounts receivable				1230
	Allowance for doubtful accounts					1230
	Cash				1230
	Account receivable					1230
		Allowance for dountful accounts
	2021		12/31/bal	9,351
			31-Dec	33846
			12/31/bal	43,197
	2022
	1-Mar	1230	1-May	1230
	Account titles and Explanation				Debit	Credit
	Bad debts expense				33800
	allowance for uncollectible accounts					33,800