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Number of Days Past Due 139,600 94,400 31,400 13,800 $311,800 $145,800 $50,500 $

ID: 2488579 • Letter: N

Question

Number of Days Past Due

139,600

94,400

31,400

13,800

$311,800

$145,800

$50,500

$29,800

$46,700

$39,000

3%

7%

14%

24%

71%

$ 50,979

$ 4,374

$3,535

$4,172

$ 11,208

$27,690

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Account Titles and Explanation

Debit

Credit

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Show List of Accounts

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Bad Debts Expense

Allowance for Doubtful Accounts

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No.

Date

Account Titles and Explanation

Debit

Credit

(To reinstate account previously written off)

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Allowance for Doubtful Accounts

8,300

42,679

50,979

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Account Titles and Explanation

Debit

Credit

Presented below is an aging schedule for Bosworth Company.
Customer Total Not Yet Due

Number of Days Past Due

1–30 31–60 61–90 Over 90 Aneesh $ 27,000 $ 11,000 $16,000 Bird 43,100 $ 43,100 Cope 63,100 8,300 8,100 $46,700 DeSpears 39,000 $39,000 Others

139,600

94,400

31,400

13,800

  

$311,800

$145,800

$50,500

$29,800

$46,700

$39,000

Estimated percentage uncollectible

3%

7%

14%

24%

71%

Total estimated bad debts

$ 50,979

$ 4,374

$3,535

$4,172

$ 11,208

$27,690


At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,300.

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Explanation / Answer

1.

Account titles and explanation

Debit

Credit

December 31, 2013

Bad debt expense

$ 42,679

Allowance for doubtful accounts

$ 42,679

($50,979-$8,300)

2.

Bad Debt expense

December 31, 2013

$ 42,679

December 31, 2013 Balance

$ 42,679

Allowance for doubtful accounts

January 1, 2013 Balance

$ 8,300

December 31, 2013

$ 42,679

December 31, 2013 Balance

$ 50,979

3.

Account titles and explanation

Debit

Credit

March 1, 2014

Allowance for doubtful accounts

$ 890

Accounts receivables

$ 890

May 1, 2014

Accounts receivables

$ 890

Allowance for doubtful accounts

$ 890

May 1, 2014

Cash

$ 890

Accounts receivables

$ 890

4

Allowance for doubtful accounts

January 1, 2013 Balance

$ 8,300

December 31, 2013

$ 42,679

December 31, 2013 Balance

$ 50,979

January 1, 2014 Balance

$ 50,979

March 1, 2013

$ 890

May 1, 2013

$ 890

December 31, 2013 Balance

$ 50,979

5.

Account titles and explanation

Debit

Credit

December 31, 2014

Bad debt expense

$56,100

Allowance for doubtful accounts

$56,100

($54,000 + $2,100)

Account titles and explanation

Debit

Credit

December 31, 2013

Bad debt expense

$ 42,679

Allowance for doubtful accounts

$ 42,679

($50,979-$8,300)