Presented below is an aging schedule for Bosworth Company. Not Yet Number of Days Past Due Customer
Question:
Presented below is an aging schedule for Bosworth Company.
Not Yet Number of Days Past Due Customer Total Due 1–30 31–60 61–90 Over 90 Aneesh $ 24,000 $ 9,000 $15,000 Bird 30,000 $ 30,000 Cope 50,000 5,000 5,000 $40,000 DeSpears 38,000 $38,000 Others 120,000 72,000 35,000 13,000
$262,000 $107,000 $49,000 $28,000 $40,000 $38,000 Estimated percentage uncollectible 3% 7% 12% 24% 60%
Total estimated bad debts $ 42,400 $ 3,210 $ 3,430 $ 3,360 $ 9,600 $22,800 At December 31, 2013, 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, 2013. (Use T-accounts.)
(b) Journalize and post to the allowance account these 2014 events and transactions: 1. March 1, a $600 customer balance originating in 2013 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, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.
AppendixLO1
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9781118771112
5th Edition
Authors: Kimmel, Wetlands, Kieso