Question

Not Yet Number of Days Past Due Customer Total Due 1-30 31-60 61-90 Over 90 24,000 30,000 $ 30,000 50,000 5,000 5,000 38,000 120,000 72,000 35,000 13,000 9,000 $15,000 Aneesh Bird Cope DeSpears Others $40,000 $38,000 $262,000 $107,000 $49,000 $28.000 $40,000 $38,000 Estimated percentage uncollectible 396 | 796 | 12% | 24% | 60% Total estimated bod e 42.4005 3210 3430 5 3360 5 9.600 42,400 3,210 3,430 3,360 9,600 $22,800 At December 31, 2016, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000. Instructions (a) Journalize and post the adjusting entry for bad debts at December 31, 2016. (Use T-accounts.) (b) Jour alize and post to the allowance account these 2017 events and transactions: 1. March 1, a $600 customer balance originating in 2016 is judged uncollectible. 2. May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1. (c) Journalize the adjusting entry for bad debts at December 31, 2017, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.

Answer 1

Ans a
Date	Accounts Title	Dr	Cr
Dec 31 2017	Bad Debt expenses	34400
	Allowance for Doubtful Accounts		$34,400
	(42400-8000)
	(being bad debt expenses recorded)
	T accounts
	Bad Debt expenses
	Allowance for Doubtful Accounts	$34,400
	Ending bal	$34,400
Ans b
Date	Accounts Title	Dr	Cr
Marc 1 2017	Allowance for Doubtful Accounts	600
	Accounts Receivable		$600
(being account written off as uncollectible)
May 1 2017	Accounts Receivable	600
	Allowance for Doubtful Accounts		$600
(being account reinstated)
May 1 2017	Cash	600
	Accounts Receivable		$600
(being cash received from customer account)
	T accounts
	Allowance for Doubtful Accounts
	Accounts Receivable	$600	Beg Bal	8000
			Accounts Receivable	$600
		Dr	Cr
ans c	Bad Debt expenses	38100
Dec 31 2017	Allowance for Doubtful Accounts		38100
	(36700+1400 (as dr bal of allowance account so added))
	(being bad debt expenses recorded)
If any doubt please comment