Presented below is an aging schedule for Bosworth Company Number of Davs Past Du

Question

Presented below is an aging schedule for Bosworth Company Number of Davs Past Due Not Yet Due Customer Total 1-30 31-60 61-90Over 90 Garnett Bird Cope Johnson Others $24,000 S9,000$15,000 30,000$30,000 50,000 38,000 120,000 5,000 5,000 $40,000 $38,000 72,00038,00038,000 $262,000 $107,000$49,000 $28,000 $40,000 $38,000 Estimated percentage uncollectible 3% 7% 12% 24% 60% Total estimated bad debts $42,400$3,210$3,430$3,360$9,600 $22,800 At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a "credit" balance of $8,000.

Explanation / Answer

Revised provision for doubt ful debts =$42,400

Less:Opening Balance provision =$(8,000)

Balance provision to be provided =$34,400

Journal Entry:

Bad Debts A/c Dr $34,400

Provisiona for Bad Debts Cr $34,400

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