WileyPLUS Weygandt, Financial & Managerial Accounting, 2e Assignment Gradebook O

Question

WileyPLUS Weygandt, Financial & Managerial Accounting, 2e Assignment Gradebook ORION Downloadable eTextbook ent Problem 8-3A Presented below is an aging schedule for Halleran Company. Number of Days Past Due Not Over CustomerTotal Yet Due 1-30 31-60 61-90 90 Anders Blake Coulson Deleon Others $22,000 $10,000 $12,000 40,000 40,000 57,000 34,000 132,000 96,000 16,000 14,000 16,000 6,000 $35,000 $34,000 6,000 $285,000 $152,000 $32,000 $26,000 $35,000 $40,000 Estimated Percentage Uncollectible Total Estimated Bad Debts 3% 6% 13% 25% 50% $38,610 4,560 1,920 $3,380 $8,750 $20,000 $4 At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $1 Your answer is correct. Journalize and post the adjusting entry for bad debts at December 31, 2017. (Credit account title indent manually.) Date Account Titles Debit Credit Policy I 2000-2018 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc.

Explanation / Answer

1) Bad Debts adjusting entry: Debit Credit Dec 31 17 Bad Debts 26610 Allowance for doubtful account 26610 (38610 - 12000 allowance credit) Dec 31 17 Accounts Receivable 1000 Allowance for doubtful account 1000 (reversal of the previous write-off) Dec 31 17 Cash 1000 Accounts Receivable 1000 (collection of written off receivables) T-Accounts: Allowance for doubtful account Date explanation Debit Credit Balance Dec 31 17 balance 12000 Dec 31 17 Bad Debts 26610 38610 Mar 31 18 Account Receivable 1000 39610 2) Journal entry in case bad debt as per aging schedule is $31600: Dec 31 17 Bad Debts 19600 Allowance for doubtful account 19600 (31600 - 12000 allowance credit)

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