Problem:
Presented below is an aging schedule for Bosworth Company.
|
Customer
|
Total
|
Not Yet
Due
|
Number of Days Past Due
1-30 31-60 61-90
|
Over
90
|
|
Aneesh
|
$ 30,000
|
|
$ 12,000
|
$18,000
|
|
|
|
Bird
|
36,400
|
$ 36,400
|
|
|
|
|
|
Cope
|
59,900
|
7,000
|
6,800
|
|
$46,100
|
|
|
DeSpears
|
47,000
|
|
|
|
|
$47,000
|
|
Others
|
146,200
|
92,800
|
33,100
|
20,300
|
|
|
|
|
$319,500
|
$136,200
|
$51,900
|
$38,300
|
546,100
|
547,000
|
|
Estimated percentage uncollectible
|
|
5%
|
7%
|
11%
|
25%
|
59%
|
|
Total estimated bad debts
|
$ 53,911
|
$ 6,810
|
$3,633
|
$4,213
|
$ 11,525
|
$27,730
|
1. Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Post the adjusting entry for bad debts at December 31, 2013.
2. Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous pan.)
3. At December 31. 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,800.Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
i. March 1, a $840 customer balance originating in 2013 is judged uncollectible.
ii. May 1, a check for $840 is received from the customer whose account was written off as uncollectible on March 1.
4. Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of 51,700 and the aging schedule indicates that total estimated bad debts will be $43,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)