This is an aging schedule for Boitano Company:

At December 31, 1998, the unadjusted balance in Allowance for Doubtful Accounts is a credit of \(\$ 9,000\).
\section*{Instructions}

(a) Journalize and post the adjusting entry for bad debts at December 31, 1998. (Use \(\mathrm{T}\) accounts.)

(b) Journalize and post to the allowance account these 1999 events and transactions:
(1) March 1, an \(\$ 800\) customer balance originating in 1998 is judged uncollectible (2) May 1, a check for \(\$ 800\) is received from the customer whose account was written off as uncollectible on March 1

(c) Journalize the adjusting entry for bad debts at December 31, 1999, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of \(\$ 1,100\) and the aging schedule indicates that total estimated bad debts will be \(\$ 27,100\).

Transcribed Image Text:

Customer Aber Bohr Case Datz Others Estimated percentage uncollectible Not Yet Number of Days Past Due Total Due 1-30 31-60 61-90 Over 90 $ 20,000 $ 9,000 $11,000 30,000 $30,000 $30,000 38,000 $38,000 50,000 15,000 5,000 120,000 92,000 15,000 13,000 $258,000 $137,000 $29,000 $24,000 $30,000 $38,000 3% 6% 12% 24% 50% Total estimated bad debts $ 34,930 $ 4,110 $ 1,740 $ 2,880 $7,200 $19,000