Presented below is an aging schedule for tallerao Company Number of Days Past Du

Question

Presented below is an aging schedule for tallerao Company Number of Days Past Due Not Over 90 Customer Total Yet Due 1-30 31-60 61-90 Anders Blake Coulson Deleon Others $22,100 $11,100 $11,000 40,100 40,100 57,800 16,600 6,400 33,500 $34,800 $33,500 $285,700 $152,000 $34,600 $25 00 $34,800 $38,700 52% $ 36,006 1,520 $1,730 $ 3,584 $9,048 $20,124 132,200 95,300 17,100 14,600 Estimated Percentage Uncollectible Total Estimated Bad Debts 1% 5% 14% 26% At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $13,000 (a) Journalize and post the adjusting entry for bad debts at December 31, 2017 (b) Journalize and post to the allowance account the following events and transactions in the year 2018 (1) On March 31, a $1,100 customer balance originating in 2017 is judged uncollectible (2) On May 31, a check for $1,100 is received from the customer whose account was written off as uncollectible on March 31 (c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $880 and the aging schedule indicates that total estimated bad debts will be $32,700

Explanation / Answer

Journal entries: S.no. Accounts title and explanations Debit $ Credit $ a. Dec31 17 Bad debts expense Account Dr. 23006 Allowance for Doubtful Accounts (36006-13000) 23006 b. Mar31 17 Allowance for doubtful accounts Dr. 1100     Accounts receivable 1100 31-May Accounts receivable Account Dr. 1100    Allowance for doubtful account 1100 Cash account Dr. 1100     Accounts receivable Account 1100 c. Dec31 18 Bad debts expense Account Dr. 33580    Allowance for doubtful accoounts 33580 (32700+880)

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