Question

Problem 8-3A (Part Level Submission) Presented below is an aging schedule for Whispering Winds Corp.. Number of Days Past Due Customer Total Not Yet Due 1–30 31–60 61–90 Over 90 Anders $ 22,700 $10,600 $12,100 Blake 41,300 $ 41,300 Coulson 57,100 15,200 6,000 $35,900 Deleon 34,900 $34,900 Others 132,800 95,500 15,400 15,000 6,900 $288,800 $152,000 $32,000 $27,100 $35,900 $41,800 Estimated Percentage Uncollectible 1% 6% 13% 24% 40% Total Estimated Bad Debts $ 32,299 $ 1,520 $ 1,920 $ 3,523 $ 8,616 $16,720 At December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,100.

*Problem 8-3A (Part Level Submission) Presented below is an aging schedule for Whispering Winds Corp.. Number of Days Past Due Not Over Customer Total Yet Due 1-30 31-60 61-90 90 Anders $ 22,700 $10,600 $12,100 Blake 41,300 $ 41,300 Coulson 57,100 15,200 6,000 $35,900 Deleon 34,900 $34,900 Others 132,800 95,500 15,400 15,000 6,900 $288,800 $152,000 $32,000 $27,100 $35,900 $41,800 Estimated Percentage 1% 6% 13% 24% 40% Uncollectible Total Estimated $ 32,299 $1,520 $ 1,920 $3,523 $ 8,616 $16,720 Bad Debts At December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,100. a) Journalize the adjusting entry for bad debts at December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Post the adjusting entry for bad debts at December 31, 2019. Bad Debt Expense Allowance for Doubtful Accounts

Answer 1

Solution 1:

Year	Account Title	Debit	Credit
31-Dec-19	Bad debt expense Dr ($32299 - 12100)	$20,199
	To Allowance for Doubtful Accounts		$20,199

Bad debt expense
Adjustment	$20,199
End. Bal.	$20,199
Allowance for Doubtful account
		Beg. Bal.	$12,100
		Adjutment	$20,199
		End. Bal.	$32,299

Solution 2:

Date	Explanation	Debit	Credit
31-Mar	Allowance for Doubtful Accounts	$1,200
	Accounts Receivable		$1,200
31-May	Accounts Receivable	$1,200
	Allowance for Doubtful Accounts		$1,200
	(To reverse write-off)
31-May	Cash	$1,200
	Accounts Receivable		$1,200
	(To record collection of write off)

Allowance for Doubtful Accounts
Date	Explanation	Debit	Credit	Balance
31-Dec-17	Balance			$11,600
31-Dec-17	Adjusting		$22,647	$34,247
31-Mar-18	Write Off	$1,200		$33,047
31-May-18	Reinstate		$1,200	$34,247