Presented below is an aging schedule for Galena Company

At December 31, 2009, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000.

Instructions
(a) Journalize and post the adjusting entry for bad debts at December 31, 2009. (Use T accounts.)
(b) Journalize and post to the allowance account these 2010 events and transactions:
1. March 1, a $600 customer balance originating in 2009 is judged uncollectible.
2. May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1.
(c) Journalize the adjusting entry for bad debts at December 31, 2010, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that total estimated bad debts will be$36,700.

Transcribed Image Text:

Number of Davs Past Due 1-30 31-60 61-90 Over 90 9,000 $11,000 Not Yet Due Customer Total Aber Bloom Cheng Dahl Others $ 20,000 30,000 30,000 50,000 38,000 120,000 72,000 35,000 13,000 5,000 5,000 40,000 $38,000 $258,000 $107,000 $49,000 $24,000 $40,000 $38,000 Estimated percentage uncollectible 3% 7% 12% 24% 50% Total estimated bad debts 38,120 3,210 3,4302,880 9,600 19,000