Presented below is an aging schedule for Boitano Company.

At December 31, 1996, the unadjusted balance in Allowance for Doubtful Accounts is a credit of \(\$ 9,000\).
\section*{Instructions}

(a) Journalize and post the adjusting entry for bad debts at December 31, 1996.

(b) Journalize and post to the allowance account the following 1997 events and transactions.
(1) March 1, an \(\$ 800\) customer balance originating in 1996 is judged uncollectible.
(2) May 1, a check for \(\$ 800\) is received from the customer whose account was written off as uncollectible on March 1.

(c) Journalize the adjusting entry for bad debts on December 31, 1997, 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 \(\$ 27,100\).
Journalize entries to record transactions related to bad debts.
(SO 3)

Transcribed Image Text:

Customer $ 20,000 Aber Bohr Case Datz Others Total Not Yet Due Number of Days Past Due 1-30 $ 9,000 31-60 $11,000 61-90 Over 90 30,000 $ 30,000 50,000 15,000 5,000 $30,000 38,000 $38,000 120,000 92,000 15,000 $13,000 Estimated Percentage Uncollectible Total Estimated $258,000 $137,000 $29,000 $24,000 $30,000 $38,000 3% 6% 12% 24% 50% Bad Debts $ 34,930 $ 4,110 $ 1,740 $ 2,880 $ 7,200 $19,000