Presented below is an aging schedule for Lawrenz Company.

At December 31, 2008, the unadjusted balance in Allowance for Doubtful Accounts is a credit of \($10,000.\)

Instructions

(a) Journalize and post the adjusting entry for bad debts at December 31, 2008.

(b) Journalize and post to the allowance account the following events and transactions in the year 2009.

(1) March 1, an \($1,100\) customer balance originating in 2008 is judged uncollectible.

(2) May 1, a check for \($1,100\) is received from the customer whose account was written off as uncollectible on March 1.

(c) Journalize the adjusting entry for bad debts on December 31, 2009. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of \($1,200,\) and the aging schedule indicates that total estimated bad debts will be \($28,300.\)

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Worksheet.xls File Edit View Insert Format Tools Data Window A B C D E Help F G 1 223. Number of Days Past Due 6 Comer 7 DeJong 8 Others 9 Not Customer 4 5 Baietto Akers Total $ 20,000 Yet Due 1-30 31-60 61-90 Over 90 $ 9,000 $11,000 30,000 $ 30,000 50,000 15,000 5,000 $30,000 38,000 $38,000 126,000 92,000 $264,000 $137,000 15,000 $29,000 13,000 $24,000 6,000 $30,000 $44,000 Estimated 10 Percentage Uncollectible 2% 5% 10% 24% 50% Total Estimated 11 Bad Debts $ 35,790 $ 2,740 $1,450 $ 2,400 $ 7,200 $22,000 12