Question

Presented below is an aging schedule for Loucks Company.


At December 31, 2014, 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, 2014.
(b) Journalize and post to the allowance account the following events and transactions in
the year 2015.
(1) March 1, a $1,900 customer balance originating in 2014 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, 2015. 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$38,300.


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  • CreatedJanuary 30, 2014
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