Presented below is an aging schedule for Garry Owen Company.

At December 31, 2014, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $14,000.

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 $3,400, and the aging schedule indicates that total estimated bad debts will be$42,300.

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Worksheet.xls Home Insert Page Layout Formulas Data Review Mew P18 Number of Days Past Due Not Yet Due 1-30 31-60 $11,500 $14,500 3 Customer 4 Alma 5 Browne 6 Conlon 7 Dalton 8 Others 9 Total 61-90 Over 90 $ 26,000 5,000 45,000 75,000 57,000 22,500 7,500 $45,000 $57,000 9,000 392,000 $205,500 $41,500 $34,000 $45,000 $66,000 189,000 138,000 22,500 19,500 Estimated 10 percentage uncollectible 2% 6% 10% 25% 50% 1 Total estimated 11bad debts 54,250 4,110 2,490 3,400 $11,250 $33,000 12