Presented below is an aging schedule for Garry Owen Company.

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6 ee =e ieee ae RY ere Sy: re ee or D Fila Clonal 1 | Number of Days Past Due 2a Not 2 | Customer Total Yet Due 1-30 31-60 61-90 Over 90 4 | Alma S 26,000 $11,500 $14,500 5 Browne 45,000 $ 45,000 6 Conlon 75,000 22,500 7,500 $45,000 |

7 Dalton 57,000 $57,000 8 | Others 189,000 138,000 22,500 19,500 9,000 —

9 | $392,000 $205,500 $41,500 $34,000 $45,000 $66,000

| Estimated “> las le 10 percentage

| uncollectible 2% 6% | 10% | 25% | ~S0%mm 1 | Total estimated

| bad debts S 54,250 S 4,110 S 2,490 S 3,400 $11,250 $33,000 12a At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $14,000.

Instructions

(a) Journalize and post the adjusting entry for bad debts at December 31, 2014.

(b) Journalize and post to the allowance account the following events and transactions in the year 2015.

(1) March 1, a $1,900 customer balance originating in 2014 is judged uncollectible.

(2) May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1.

(c) Journalize the adjusting entry for bad debts on December 31, 2015. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,400, and the aging schedule indicates that total estimated bad debts will be $42,300.