The following is an aging schedule for a company’s accounts receivable as at December 31, 2019:

On December 31, 2019, the unadjusted balance in the Allowance for Doubtful Accounts (prior to the aging analysis) was a credit of $6,230.

Required

a. Journalize the adjusting entry for bad debts on December 31, 2019.

b. Journalize the following selected events and transactions in 2020:

i. On April 17, a $1,450 customer account that originated in 2020 is judged uncollectible. 

ii. On September 1, a $1,450 cheque is received from the customer whose account was written off as uncollectible on April 17.

c. Journalize the adjusting entry for bad debts on December 31, 2020, assuming that the unadjusted balance in Allowance for Doubtful Accounts at that time is a debit of $4,520 and an aging schedule indicates that the estimated value of uncollectibles is $28,620.

Transcribed Image Text:

Number of days past due Current (not yet due) $ 11,000 Total amount owed Over 90 61-90 Customer's name 1-30 31-60 $ 7,000 $ 4,000 Begin Cizeron $ 41,000 $19,000 28,000 28,000 2,000 45,000 4,000 Lemoine 51,000 Rudellin Others 36,000 36,000 22,000 210,000 90,000 68,000 11,000 19,000 $366,000 $174,000 $91,000 $54,000 $25,000 $22,000 Estimated percentage that will be uncollectible Estimated value of uncollectibles 2% 4% 15% 40% 8% $ 3,480 $ 4,320 $ 8,800 $ 23,990 $ 3,640 $ 3,750