Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Presented below is an aging schedule for Sunland Company. Customer Anders Blake Coulson Deleon Number of Days Past Due Not Over Total Yet Due 1-30
Presented below is an aging schedule for Sunland Company. Customer Anders Blake Coulson Deleon Number of Days Past Due Not Over Total Yet Due 1-30 31-60 61-90 90 $ 21,900 $10,100 $11,800 38,500 $ 38,500 55,300 15,000 6,300 $34,000 33,100 $33,100 135,100 96,800 16,600 15,100 6,600 $283,900 $150,300 $33,000 $26,900 $34,000 $39,700 Others 1% 5% 13% 27% 40% Estimated Percentage Uncollectible Total Estimated Bad Debts $ 31,710 $ 1,503 $ 1,650 $ 3,497 $ 9,180 $15,880 At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,100. Journalize and post the adjusting entry for bad debts at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit Bad Debt Expense Allowance for Doubtful Accounts Journalize and post to the allowance account the following events and transactions in the year 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) On March 31, a $1,200 customer balance originating in 2020 is judged uncollectible. (2) On May 31, a check for $1,200 is received from the customer whose account was written off as uncollectible on March 31. No. Date Account Titles and Explanation Debit Credit (1). (2). (To reverse write-off) (To record collection of write-off.) Bad Debt Expense 19,610 12/31/20 Adj. 12/31/20 Bal. 19,610 Allowance for Doubtful Accounts 12/31/20 Bal. 12/31/20 Adj. 12/31/20 Bal. 12,100 19,610 31,710 Journalize the adjusting entry for bad debts on December 31, 2021, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $860 and the aging schedule indicates that total estimated bad debts will be $31,200. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles Debit Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started