Chapter $8-$ Journalize transactions related to bad debts.$($Aging Method$)$

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

$\backslash$table$[[$Customer$,$Total,Not Yet Due,Number of Days Past Due$],[1-30,31-60,61-90,$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,,35,000,,13,000,,,,],[,$$$,262,000,$$$,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 us 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 $1.$

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.$

NOTE: Enter a formula, a cell reference, or a value $($if you are unable to reference a cell$),$ into the yellow shaded input cells.

a$.$ Dec $31$

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a$.$ & b$.$

$\backslash$table$[[$Bad Debt Expense$],[\frac{12}{31},,,],[\frac{12}{31}\frac{?}{24}$ Bal.,,,$]]$

Allowance for Doubtful Accounts

$\backslash$table$[[$Allowance for Doubtful Accounts$],[2024,,\frac{12}{31}$ Bal.$],[,,\frac{12}{31}$