Question

Problem 8-3A Presented below is an aging schedule for Larkspur, Inc. Number of Days Past Due Not Over 90 Customer Total 1-30 31-60 Yet Due 61-90 $ 25,800 Anders $11,800 $14,000 Blake 40,400 40,400 Coulson 58,400 16,800 5,800 $35,800 Deleon 33,200 $33,200 133,400 Others 97,000 6,300 16,300 13,800 $291,200 $154,200 $33,900 $27,800 $35,800 $39,500 Estimated Percentage Uncollectible 3% 6% 14% 24% 49% Total Estimated Bad Debts $ 8,592 $38,499 $4,626 $ 2,034 $3,892 $19,355 At December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $11,600. Journalize the adjusting entry for bad debts at December 31, 2019. (Credit account titles are automatically in Date Account Titles Debit Credit Mar. 31, 2019 Bad Debt Expense 26899 Allowance for Doubtful Accounts 26899 Privacy Policy1 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Answer 1

1)	Account titles and Explanation				Debit	Credit
31-Dec	Bad debts expense				26899
	allowance for uncollectible accounts					26,899
		Bad debts expense
	31-Dec	26899
	End bal	26899
		Allowance for dountful accounts
			op bal	11,600
			31-Dec	26899
			End bal	38,499
1)	Account titles and Explanation				Debit	Credit
31-Mar	Allowance for doubtful accounts				1300
	Account receivable					1300
31-May	Accounts receivable				1300
	Allowance for doubtful accounts					1300
	Cash				1300
	Account receivable					1300
		Allowance for dountful accounts
	2021		12/31/bal	11,600
			31-Dec	26899
			12/31/bal	38,499
	2022
	1-Mar	1300	1-May	1300
	Account titles and Explanation				Debit	Credit
	Bad debts expense				29900+debit amount
	allowance for uncollectible accounts					29900+debit amount
	(29900+add the debit amount its been cut off)