Presented below is an aging schedule for Ivanhoe Company at December 31, 2021. Number of Days Past Due Not Yet Due Customer Over 90 Total 1-30 31-60 61-90 Aneesh $ 23,700 $8,700 $15,000 Bird 27,900 $ 27,900 Cope 53,500 4,900 4,900 $43,700 De Spears 38,500 $38,500 Others 126,300 77,500 36,600 12,200 $269,900 $110,300 $50,200 $27,200 $43,700 $38,500 Estimated percentage uncollectible 3% 8% 12% 24% 61% Total estimated bad debts $ 44,562 $ 3,309 $4,016 $3,264 $ 10,488 $23,485 At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,900. Your Answer Correct Answer Your answer is partially correct. Journalize the adjusting entry for bad debts at December 31, 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Bad Debt Expense 9655 Allowance for Doubtful Accounts 9655 Post the adjusting entry for bad debts at December 31, 2021. Bad Debts Expense 12/31 36662 12/31 Bal. 36662 Allowance for Doubtful Accounts 12/31 Bal. 7900 12/31 36662 12/31 Bal. 44562 Journalize the 2022 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. March 1, a $660 customer balance originating in 2021 is judged uncollectible. 2. May 1, a check for $660 is received from the customer whose account was written off as uncollectible on March 1. Date Account Titles and Explanation Debit Credit Mar. 1 Allowance for Doubtful Accounts 660 Accounts Receivable 660 May 1 Accounts Receivable 660 Allowance for Doubtful Accounts 660 (To reinstate account previously written off) Cash 660 Accounts Receivable 660 Post to the allowance account these 2022 events. (Post entries in the order of journal entries posted in the previous part.) Allowance for Doubtful Accounts 2021 12/31 Bal. 7,900 12/31 36,662 12/31 Bal. 44,562 2022 V V