P8-3A Journalize entries to record transactions related to bad debts Presented below is an aging schedule for Halleran Company. Customer Anders Blake Coulson Deleon Others Number of Days Past Due Total Not yet 1-30 31-60 61-90 Over 90 $ 22.000 $ 10.000 $ 12.000 40.000 $ 40.000 57.000 16.000 6.000 35.000 34.000 34.000 132.000 96.000 16.000 14.000 6.000 $ 285.000 $152.000 $ 32.000 $26.000 $ 35.000 $ 40.000 Estimated Percentage Uncollectible Total Estimated Bad Debts 3% 6% 13% 25% 50% 38.610 $ 4.560 $ 1.920 $ 3.380 $ 8.750 $ 20.000 At December 31, 2015, 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, 2015. (b) Journalize and post the allowance account the following events and transactions in the year 2016. (1) On March 31, a $1,000 customer balance originating in 2015 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, 2016, assuming that the unadjusted balance in the Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $31,600. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (a) Dec. 31 Account Value Account Value Bad Debt Explanation Ref. Debit Credit Balance Date 2014 Dec. 31 Adjusting Value Value Allowance for Doubtful Accounts Explanation Ref. Debit Credit Balance Date 2014 Dec. 31 Dec.31 2015 Mar. 31 31. May Balance Adjusting 12.000 ? Value Value ? ? Value (b) (1) 2015 Mar. 31 Account Value Account Value (b) (2) 2015 May 31 Account Value Account Value May 31 Account Value Account Value (c) 2015 Dec 31 Account Value Account Value After you have completed the requirements of P8-3A, consider these additional questions. Answers are on the other tab in this file. 1. Suppose the amount uncollectible on March 31 is changed to $1,800 and no cash was received from customer subsequent to the write-off of accounts receivable. What would be the balance of the Allowance for Doubtful Accounts before adjustment? 2. Suppose the balance in the Allowance for Doubtful Accounts before adjustment was $2,100 debit. An aging schedule indicates that total estimated bad debts will be $38,000. What is the year-end adjustment for bad debts