Presented below is an aging schedule for Garry Owen plc.

At December 31, 2017, 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, 2017.
(b) Journalize and post to the allowance account the following events and transactions in the year 2018.
(1) March 1, a £1,900 customer balance originating in 2017 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, 2018. 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 £48,300.

Worksheet.xls Home Insert Page LayoutFormulas Data ReviewView P18 Number of Days Past Due Not Yet Due 3Customer 4 Alma 5 Browne 6 Conlon 7 Dalton 8 Others 9 Total 26,000 45,000 45,000 5,000 22,500 7,500 57,000 1-30 11,500 14,500 31-60 61-90 Over 90 45,000 57,000 9,000 392,000205,500 41,500 34,000 45,000 66,000 189,000 138,000 22,500 19,500 Estimated 10 percentage uncollectible 2% 6% 10% 25% 60% 1 Total estimated bad debts E 60,850 4,110 2,490 3,400 11,250 39,600 12