ize 2 Presented below is an aging schedule for Halleran Company Number of Days P
ID: 2445389 • Letter: I
Question
ize 2 Presented below is an aging schedule for Halleran Company Number of Days Past Due Customer Total Not yet Due 1-30 31-60 61-90 Over 90 6 Anders 7 Blake 8 Coulson 9 Deleon 10 Others $ 22,000 $10,000 $ 12,000 40,000 40,000 57,000 34,000 6,000 35,000 34,000 9 96,000 16,000 14,000 $285,000 $152,000 $ 32,000 $ 26,000 132,000 6 35,000 40,000 Estimated Uncollectible Total Estimated 12 Percentage 3% 1396 2 5% 5096 8 14 Bad Debts 15 16 At December 31, 2015, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000 17 Instructions: 181 (a) Journalize and post the adjusting entry for bad debts at December 31, 2015 19 (b) Journalize and post the allowance account the following events and transactions in the year 2016 20 $38,610 $ 4,560 $ 1,920 $ 3,380 $ 8,750 20,000 (1) On March 31, a $1,000 customer balance originating in 2015 is judged uncollectible (2) On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible 23 (c) Journalize the adjusting entry for bad debts on December 31, 2016, assuming that the unadjusted balance in the Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $31,600 26 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". (d) Management would like to know the impact on their estimated uncollectible accounts if the economy slows and the risk of loss increases. You can easily help them using Excel. Copy the aging table above and paste it into this worksheet below the journal entries. Then change the % uncollectible to 4.5%, 9%, 1 5%, 40%, and 60% from the initial rates. Be sure that your new table 2 27 looks professional and is like the original table 28 8Explanation / Answer
Answer:
(a) Dec. 31 Bad debts expense A/C Dr. 26,610 Allowance for doubtful accounts 26,610 Bad Debt Date Explanation Ref. Debit Credit Balance 2014 Dec. 31 Adjusted allowance account 26,610 26,610 Allowance for Doubtful Accounts Date Explanation Ref. Debit Credit Balance 2014 Dec. 31 Balance 12,000 Dec.31 Adjusted allowance account 26,610 38,610 2015 Mar. 31 1,000 1,000 31-May 1,000 1,000 2015 (b) (1) Mar. 31 Bad debts expense A/C 1,000 Allowance for doubtful Accounts 1,000 (b) (2) 2015 May 31 Account Receivable A/C 1,000 Allowance for doubtful Accounts 1,000 May 31 Cash A/C Dr. 1,000 Account Receivable A/C 1,000 (c) 2015 Dec 31 Bad debts expense A/C 32400 Allowance for doubtful Accounts 32400Related Questions
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