Presented below is an aging schedule for Joplin Company. At December 31, 2007, the unadjusted balance in
Question:
Presented below is an aging schedule for Joplin Company.
At December 31, 2007, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000. |
Instructions
(a) Journalize and post the adjusting entry for bad debts at December 31, 2007. (Use T accounts.)
(b) Journalize and post to the allowance account these 2008 events and transactions: 1. March 1, a $600 customer balance originating in 2007 is judged uncollectible. 2. May 1, a check for $600 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, 2008, 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 $32,700.
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471730514
4th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso