Presented below is an aging schedule for Jafar Company.

At December 31, 2010, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $16,000.

Instructions

(a) Journalize and post the adjusting entry for bad debts at December 31, 2010.

(b) Journalize and post to the allowance account the following events and transactions in the year 2011.

(1) March 1, a $1,900 customer balance originating in 2010 is judged uncollectible.

(2) May 1, a check for $1,900 is received from the customer whose account was written off as uncollectible on March 1.

(c) Journalize the adjusting entry for bad debts on December 31, 2011. Assume that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $2,000, and the aging schedule indicates that total estimated bad debts will be $42,300.

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Number of Days Past Due Not Total $ 30,000 45,000 75,000 57,000 189,000 $396,000 31-60 $16,500 Customer 1-30 61-90 Over 90 Yet Due $ 13,500 Akers $ 45,000 22,500 Baietto Comer 7,500 $45,000 DeJong $57,000 9,000 $66,000 19,500 $36,000 138,000 $205,500 Others 22,500 $43,500 $45,000 Estimated Percentage Uncollectible Total Estimated 2% 6% 10% 25% 50% $ 54,570 $ 11,250 $ 2,610 $ 3,600 $ 4,110 $33,000 Bad Debts