Question
Presented below is an aging schedule for Wildhorse Co.. Customer Total Not yet due 1-30 31-60 61-90 over 90 Anders $21,800 $10,400 $11,400 Blake 42,000
Presented below is an aging schedule for Wildhorse Co..
Customer Total Not yet due 1-30 31-60 61-90 over 90
Anders $21,800 $10,400 $11,400
Blake 42,000 42,000
Coulson 56,100 15,400 6,200 $34,500
Deleon 34,400 34,400
other 131,600 94,700 17,100 14,400 5,400
---------- --------- ---------- ---------- ----------- ----------
$285.900 152,100 33,700 25,800 34,500 39,800
Estimated percentage uncollectible 2% 5% 13% 24% 55%
--------- ------- ------ ----- ------- -----------
Total estimated bad debts $38,251 $3,042 1,685 3,354 8,280 21,890
At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,900.
Journalize and post the adjusting entry for bad debts at December 31.2020
bad Debt Expense
12/31/20 adj 25,351
12/31/20 bal 25,351
allowance for doubtful account
12/31/20 blank
12/31/20 25,351
12/31/20 38,251
12/31/20 blank
Journalize and post to the allowance account the following events and transactions in the year 2021.
1)On March 31, a $1,300customer balance originating in 2020 is judged uncollectible.
(2)On May 31, a check for $1,300is received from the customer whose account was written off as uncollectible on March 31.
bad debt expense
12/31/20 Adj 25,351
12/31/20 bal. 25,351
Allowance for debt doubtful accounts
12/31/20 bal 11,400
12/31/20 adj 25,351
12/31/20 bal 38,251
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 $860and the aging schedule indicates that total estimated bad debts will be $31,500.
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