Presented below is an aging schedule for Sycamore AG.

At December 31, 2020, 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, 2020.
b. Journalize and post to the allowance account the following events and transactions in the year 2021.
1. On March 31, a €1,000 customer balance originating in 2020 is judged uncollectible.
2. On May 31, a check for €1,000 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, 2021, 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 €31,600.

Transcribed Image Text:

Worksheet Insert Formulas View Home Page Layout Data Review fx P18 B Number of Days Past Due 2 Not 61-90 Total € 22,000 40,000 57,000 34,000 132,000 €285,000 1-30 31-60 Over 90 Customer Anders Blake 3 Yet Due €10,000 €12,000 € 40,000 16,000 5 6 Cyr Deleon 8 Others 6,000 €35,000 €34,000 6,000 €40,000 96,000 €152,000 €32,000 €26,000 €35,000 16,000 14,000 Estimated Percentage Uncollectible Total Estimated Bad Debts 10 3% 6% 13% 25% 50% 11 € 38,610 4,560 € 1,920 € 3,380 € 8,750 € €20,000 12