Presented below is an aging schedule for Halleran Company. Number of Days Past D

Question

Presented below is an aging schedule for Halleran Company. Number of Days Past Due $ 23,600 $11,100 $12,500 Blake Coulson 41,300 $41,300 56,40016,300 5,200$34,900 33,400 34,900 33,400 134,500 96,700 16,200-14,600 7,000 289,200 $154,300 $32,500 $27,100 $34,900 $40,400 003500270 4 900,40 Estimated 2% 5% 13% 25% 49% Total Estimated Bad Debts $ 36,755 $3,086 $ 1,625 $3,523 $8,725 $19,796 t December 31, 2015, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,10 ournalize and post the adjusting entry for bad debts at December 31, 2015. (Credit account titles are automatically indented when amount is entered. Do not Indent manuaty,) ec 31 Dec. 31 Atstig owance for Doubtful Accounts Dec. 31 Balance Dec. 31 Adjusting urnalize and post to the allowance account the folowing events and transactions in the year 2016.(Credit account tities are automatically indented when amouat is entered. Do not indent manually, ariaisatina in 2015.is liatond uncolectihie

Explanation / Answer

31-Dec Bad Debts expense ( P&L) Dr 24575             Allowance for Bad Debts (BS) Cr 24575 ( To record additional allowance for bad debts) Total estimated bad debts for Dec 2015 ( 3086+1625+3523+8725+19796) 36755 Less : unadjusted allowance for doubtful accounts 12180 Additional allowance required 24575 Bad Debt expense Date Explanation Debit Credit Balance 31-Dec Adjusting 24575 24575 Allowance for Doubtful accounts Date Explanation Debit Credit Balance 31-Dec Balance 12180 31-Dec Adjusting 24575 36755 1)      31-Mar Allowance for Doubtful accounts Dr 1250                   Accounts receivable Cr 1250 ( To record balance written off) 31-May Accounts receivable Dr 1250            Allowance for Doubtful accounts Cr 1250 ( To record reversal of write off) 31-May Cash Dr 1250                Accounts receivable Cr 1250 ( To record collection of write off)

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