Presented here is an aging schedule for Case Western Company:

At December 31, 2001, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.
Instructions

(a) Journalize and post the adjusting entry for bad debts at December 31, 2001. (Use T accounts.)

(b) Journalize and post to the allowance account these 2002 events and transactions:
1. March 31, a $500 customer balance originating in 2001 is judged uncollectible.
2. May 31, a check for $500 is received from the customer whose account was written off as uncollectible on:March 31.

(c) Journalize the adjusting entry for bad debts on December 31, 2002, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $30,300.

Transcribed Image Text:

Not Yet Number of Days Past Due Customer Total Due 1-30 31-60 61-90 Over 90 Anita Barry $ 22,000 $10,000 $12,000 40,000 $40,000 Chagnon 57,000 16,000 6,000 $35,000 David. 34,000 $34,000 Others Estimated percentage uncollectible Total estimated bad debts 126,000 96,000 16,000 14,000 $279,000 $152,000 $32,000 $26,000 $35,000 $34,000 4% 7% 13% 25% 50% $ 37,450 $ 6,080 $2,240 $3,380 $8,750 $17,000