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Problem 9-03A a-c (Part Level Submission) Presented below is an aging schedule for Halleran Company. Number of Days Past Due Customer Total Not Yet Due

Problem 9-03A a-c (Part Level Submission)

Presented below is an aging schedule for Halleran Company.

Number of Days Past Due

Customer

Total

Not Yet Due

130

3160

6190

Over 90

Anders $ 22,000 $10,000 $12,000
Blake 40,000 $ 40,000
Coulson 57,000 16,000 6,000 $35,000
Deleon 34,000 $34,000
Others 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 3% 6% 13% 25% 50%
Total Estimated Bad Debts $ 38,610 $ 4,560 $ 1,920 $ 3,380 $ 8,750 $20,000

At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.

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 $1,000 customer balance originating in 2020 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.

No.

Date

Account Titles and Explanation

Debit

Credit

1.

Mar. 31

2.

May 31

(To reverse write-off)

May 31

(To record collection of write off.)

Allowance for Doubtful Accounts

Date

Explanation

Ref.

Debit

Credit

Balance

Dec. 31, 2020

Balance

12,000

Dec. 31, 2020

Adjusting

26,610

38,610

Mar. 31, 2021

May 31, 2021

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