Presented below is an aging schedule for Bryan Company at December 31, 2024.

At December 31, 2024, 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, 2024. (Use T-accounts.)

b. Journalize and post to the allowance account these 2025 events and transactions:

1. March 1, a \(\$ 600\) customer balance originating in 2024 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, 2025, 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 \(\$ 36,700\).

Transcribed Image Text:

Customer Aneesh Bird Cope DeSpears Others Estimated percentage uncollectible Total estimated bad debts Total $ 24,000 30,000 50,000 38,000 120,000 $262,000 $ 42,400 Not Yet Due $ 30,000 5,000 72,000 $107,000 3% $ 3,210 1-30 $ 9,000 5,000 35,000 13,000 $49,000 $28,000 7% Number of Days Past Due 31-60 61-90 $15,000 $3,430 12% $ 3,360 $40,000 $40,000 24% $ 9,600 Over 90 $38,000 $38,000 60% $22,800