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Problem $1$

Presented below is an aging schedule for Bry

Problem $1$

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

$\backslash$table$[[,,\backslash$table$[[$Not Yet$],[$Due$]],$Number of Da$,$Days Past Due$],[$Customer$,$Total,,$1-3031-60,61-90$ Over $90],[$Aneesh$,$$$24,000,,$$$9,000$ $$15,000,],[$Bird$,30,000,$$$30,000,,],[$Cope$,50,000,5,000,5,000,$$$40,000],[$DeSpears$,38,000,,,$$$38,000],[$Others$,120,000,72,000,35,00013,000,],[,$$$262,000,$$$107,000,$$$49,000$ $$28,000$ $$,$$$40,000$ $$38,000]]$

Estimated

Percentage

Uncollectible $3\%7\%12\%24\%60\%$

Total estimated

Bad debts

$$42,400$ $$3,210$ $$3,430$ $$3,360$ $$9,600$ $$22,800$

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:

March $1,$ a $$600$ customer balance originating in $2024$ is judged uncollectible.

May $1,$ a check for $$600$ is received from the customer whose account was written off as uncollectible on March $1.$

Problem $2$

On January $1,2025,$ Harvee Company had Accounts Receivable of $$54,200$ and Allowance for Doubtful accounts of $$3,700.$

Harvee Company prepares financial statements annually. During the year, the following selected transactions occurred:

January $5$ Sold $$4,000$ of merchandise to Rian Company, terms n$/30.$

Accepted a $$4,000,4-$month, $9\%$ promissory note from Rian Company for

February $2$ balance due.

Sold $$12,000$ of merchandise to Cato Company and accepted Cato's $$12,000,2-$

February $12$ month, $10\%$ note for the balance due.

February $26$ Sold $$5,200$ of merchandise to Malcolm Co$.,$ terms n$/10.$

April $5$ Accepted a $$5,200,3-$month, $8\%$ note from Malcolm Co$.$ for balance due.

April $12$ Collected Cato Company note in full.

June $2,$ Collected Rian Company note in full.

Sold $$2,000$ of merchandise to Gerri Inc. and accepted a $$2,000,6-$month, $12\%$

June $15$ note for the amount due.

Instructions

Journalize the transactions. $($Omit cost of goods sold entries.$)$an Company at December $31,2024.$

$\backslash$table$[[,,$Not Yet Due,Number of Days Past Due$],[$Customer$,$Total,$1-3031-60,61-90$ Over $90],[$Aneesh$,$$$24,000,,$$$9,000$ $$15,000,],[$Bird$,30,000,$$$30,000,,],[$Cope$,50,000,5,000,5,000,$$$40,000],[$DeSpears$,38,000,,,$$$38,000],[$Others$,120,000,72,000,35,00013,000,]]$

$$262,000$ $$107,000$ $$49,000$ $$28,000$ $$40,000$ $$38,000$

Estimated

Percentage

Uncollectible $3\%7\%12\%24\%60\%$

Total estimated

Bad debts

$$42,400$ $$3,210$ $$3,430$ $$3,360$ $$9,600$ $$22,800$

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:

March $1,$ a $$600$ customer balance originating in $2024$ is judged uncollectible.

May $1,$ a check for $$600$ is received from the customer whose account was written off as uncollectible on March $1.$

Problem $2$

On January $1,2025,$ Harvee Company had Accounts Receivable of $$54,200$ and Allowance for Doubtful accounts of $$3,700.$

Harvee Company prepares financial statements annually. During the year, the following selected transactions occurred:

January $5$ Sold $$4,000$ of merchandise to Rian Company, terms n$/30.$

Accepted a $$4,000,4-$month, $9\%$ promissory note from Rian Company for

February $2$ balance due.

Sold $$12,000$ of merchandise to Cato Company and accepted Cato's $$12,000,2-$

February $12$ month, $10\%$ note for the balance due.

February $26$ Sold $$5,200$ of merchandise to Malcolm Co$.,$ terms n$/10.$

April $5,$ Accepted a $$5,200,3-$month, $8\%$ note from Malcolm Co$.$ for balance due.

April $12$ Collected Cato Company note in full.

June $2$ Collected Rian Company note in full.

Sold $$2,000$ of merchandise to Gerri Inc. and accepted a $$2,000,6-$month, $12\%$

June $15$ note for the amount due.

Instructions

Journalize the transactions. $($Omit cost of goods sold entries.$)$

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