Question - Presented below is an aging schedule for Lawrenz Company:
|
|
Number of Days Past Due
|
|
|
Customer:
|
Not yet due:
|
1 ~ 30
|
31 ~ 60
|
61 ~ 90
|
Over 90
|
Total:
|
|
Akers
|
|
$9,000
|
$11,000
|
|
|
$20,000
|
|
Baietto
|
$30,000
|
|
|
|
|
$30,000
|
|
Comer
|
15,000
|
5,000
|
|
$30,000
|
|
$50,000
|
|
DeJong
|
|
|
|
|
$38,000
|
$38,000
|
|
Others
|
92,000
|
15,000
|
13,000
|
|
6,000
|
$126,000
|
|
|
$137,000
|
$29,000
|
$24,000
|
$30,000
|
$44,000
|
$264,000
|
|
Estimated % Uncollectible
|
2%
|
5%
|
10%
|
24%
|
50%
|
|
|
Total Est. Bad Debts
|
?
|
?
|
?
|
?
|
?
|
?
|
At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is credit of $10,000.
Instructions:
(a) Complete the aging schedule above.
(b) Determine the adjustment for bad debt expense to the allowance account on 12/31/14.
(c) Determine the balance in the allowance account as of 12/31/14.