QUESTION #2 At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of 11,420. Instructions: Journalize and post the adjusting entry for bad debt expense at December 31, 2017. Journalize and post the following events and transactions in the year 2018. On March 31, a 1,000 customer balance originating in 2017 is judged uncollectible. On May 31, a check for 1,000 is received from the customer whose account was written off as uncollectible on March 31. Journalize and post the adjusting entry for bad debt expense on 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 42,800.
COMPANY INFO: Presented below is an aging of receivables schedule for Peruvian Connection Company.
Number of Days Past Due Customer Total Not Yet Due 1-30 31-60 61-90 Over 90
Anders 28,000 12,000 16,000
Blake 40,000 40,000
Cyrs 57,000 16,000 6,000 35,000
De Jong 34,000 34,000
Others 132,000 96,000 16,000 14,000 6,000
total 291,000 152,000 34,000 30,000 35,000 40,000
Estimated % Uncollectible 2% 6% 10% 25% 60%
Total estimated Bad debts 40,830 3,040 2,040 3,000 8,750 24,000
(a) GENERAL JOURNAL
Dec	Account Title	Debit	Credit
(b) (1)
Mar	Account Title	Debit	Credit
(b) (2)
May	Account Title	Debit	Credit

(a) & (b) CHART OF ACCOUNTS

CASH			ACCOUNTS RECEIVABLE				ALLOWANCE FOR DOUBTFUL ACCOUNTS			BAD DEBT EXPENSE
				bal. 1,000				11,420 bal.

(c) GENERAL JOURNAL

Dec

Account Title

Debit

Credit

(c) CHART OF ACCOUNTS

ALLOWANCE FOR DOUBTFUL ACCOUNTS			BAD DEBT EXPENSE
Bal. 1,100

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