Presented below is an aging schedule for Sycamore Company.

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|_| Home| Insert Page Layout Fo Worksheet.xls rmulas Data Review View Number of Days Past Due ES eee eS a ee ee ee 1-30 31-60 61-90 Over 90

$12,000 $16,000 Total

$ 28,000 40,000 57,000 34,000 132,000

$291,000 Customer Yet Due Anders Blake Cyrs De Jong Others S 40,000 16,000 6,000 $35,000

$34,000 96,000

$152,000 16,000 Estimated percentage uncollectible 2%

Total estimated bad debts ray (2)

$41,730 $_3,040_ At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $9,000.

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) On March 31, a $1,000 customer balance originating in 2014 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, 2015, 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.