Presented below is an aging schedule for Royal Company. Customer Total Not Yet Due Number of days
Question:
Presented below is an aging schedule for Royal Company.
Customer | Total | Not Yet Due | Number of days past due 1-30 31-60 61-90 Over 90 | |||
Aber | $20,000 | $9,000 | $11,000 | |||
Bohr | 30,000 | 30,000 | ||||
Case | 50,000 | 15,000 | 5,000 | 30,000 | ||
Datz | 38,000 | 38,000 | ||||
Others | 120,000 | 92,000 | 15,000 | 13,000 | ||
$258,000 | $137,000 | $29,000 | $24,000 | 30,000 | $38,000 | |
Estimated percentage uncollectible | 3% | 5% | 12% | 24% | 50% | |
Total estimated bad debts |
At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,000.
Instructions
Calculate the total estimated bad debts based on the above information.
Journalize and post the adjusting entry for bad debts at December 31, 2017. (Use T accounts)
Journalize and post to the allowance account these 2018 events and transactions:
- March 1, a $600 customer balance originating 2017 is judged uncollectible.
- May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1.
D) Journalize the adjusting entry for bad debts at December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that total estimated bad debts will be $33,200.
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso