Question: Presented below is an aging schedule for Bryan Company at December 31, 2021. At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts
Presented below is an aging schedule for Bryan Company at December 31, 2021.
At December 31, 2021, 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, 2021. (Use T-accounts.)
b. Journalize and post to the allowance account these 2022 events and transactions:
1. March 1, a $600 customer balance originating in 2021 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, 2022, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.
Number of Days Past Due Not Yet Customer Total Over 90 Due 1-30 31-60 61-90 $ 24,000 $ 9,000 Aneesh $15,000 $ 30,000 Bird 30,000 Cope DeSpears 5,000 $40,000 50,000 5,000 $38,000 38,000 Others 13,000 120,000 72,000 35,000 $262,000 $107,000 $49,000 $28,000 $40,000 $38,000 Estimated percentage uncollectible 3% 12% 60% 7% 24% Total estimated $ 42,400 $ 3,430 $ 9,600 $ 3,210 $ 3,360 bad debts $2,800
Step by Step Solution
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a Dec 31 Bad Debt Expense 34400 Allowance for Doubtful Accounts 42400 8000 34400 Bad ... View full answer
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