PO-JA Jouhallze ehthes to fecord trahsactons felated to bad debts Presented belo

Question

PO-JA Jouhallze ehthes to fecord trahsactons felated to bad debts Presented below is an aging schedule for Halleran Company Number of Days Past Due 31-60 61-90 Over 90 Customer Anders Blake Coulsorn Deleon Others Total Not yet Due 130 S 22,000 S 10,000 S 12,000 40,000 S 40,000 57,000 34,000 16,000 6,000 35,000 34,000 6.000 26,000 $ 35,000 $ 40,000 132,000 14,000 16,000 285,000 152,000 $ 32,000 96,000 Estimated Percentage Uncollectible Total Estimated Bad Debts 3% 6% 13% 25% 50% S 38,610 S 4,560 S 1,920 S 3,380 S 8,750 $ 20,000 At December 31, 2015, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000 Instructions (a) Journalize and post the adjusting entry for bad debts at December 31, 2015 (b) Journalize and post the allowance account the following events and transactions in the year 2016 (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 on March 31 (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 bac debts will be $31,600 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a"?"

Explanation / Answer

Answer. Journal Entry S.No. Date Particulars Dr. Amt. Cr. Amt. (a) 31-Dec-15 Bad Debts Expenses                                       Dr.          26,610 $38,610 - $12,000    To Allowance for Doubtful Accounts          26,610 (Record the Bad debts expenses for 2015) (b)-(1) 31-Mar-16 Allowance for Doubtful Accounts            Dr.            1,000    To Accounts Receivable            1,000 (Record the accounts receivable written off) (b)-(2) 31-May-16 Accounts Receivable                                      Dr.            1,000    To Allowance for Doubtful Accounts            1,000 (Record the accounts recivable w/o earlier, reinstated) 31-May-16 Cash                                                                      Dr.            1,000    To Accounts Receivable            1,000 (Record the cash recd. From accounts receivable) © 31-Dec-16 Bad Debts Expenses                                       Dr.          32,400 $31,600 + $800    To Allowance for Doubtful Accounts          32,400 (Record the Bad debts expenses for 2016) Answer 2-1. Balance of Allowance for Dountful Account - Jan 1, 2015          38,610 Amount Written Off - Mar. 31, 2016          (1,800) Balance of Allowance for Dountful Account - Before Adj.          36,810 Answer 2-2. Bad Debt Expenses = $38,000 + $2100 (Dr Balance) Bad Debt Expenses = $40,100

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