Question

Problem 8-03A a-c (Video) Presented below is an aging schedule for Halleran Company. Not Yet Due Customer Anders Number of Days Past Due Over 1-30 31-60 61-90 90 $10,000 $12,000 Blake Total $ 22,000 40,000 57,000 34,000 132,000 $285,000 $40,000 16,000 6,000 Coulson Deleon Others $35,000 96,000 $152,000 16,000 $32,000 14,000 $26,000 $34,000 6,000 $40,000 $35,000 3% 6% 13% 25% 50% Estimated Percentage Uncollectible Total Estimated Bad Debts $ 38,610 $ 4,560 $ 1,920 $3,380 $8,750 $20,000 At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.

Answer 1

Credit Date Account titles Dec. 31, 2020 Bad debt expense (38,610-12,000) Allowance for doubtful accounts Debit 26,610 26,610

Dec. 31, 2020. Adj. Dec. 31, 2020. bal. Bad debt expense 26,610 26,610 Allowance for doubtful accounts Dec. 31, 2020 Dec. 31, 2020 (Adj.) Dec. 31, 2020. bal. 12,000 26,610 38.610

Credit Date (1) Mar. 31 Debit 1,000 1,000 (2) May 31 1,000 Account titles Allowance for doubtful accounts Accounts receivable Accounts receivable Allowance for doubtful accounts (To reverse write-off) Cash Accounts receivable (To record collection of write off) 1,000 1,000 May 31 1,000

Credit Date Account titles Dec. 31, 2021 Bad debt expense (31,600+800) Allowance for doubtful accounts Debit 32,400 32,400