Presented below is an aging schedule for Royal Company.                                                                                          

 

Customer	Total	Not Yet Due	Number of days past due 1-30                   31-60              61-90           Over 90
Aber	$20,000		$9,000	$11,000
Bohr	30,000	30,000
Case	50,000	15,000	5,000		30,000
Datz	38,000					38,000
Others	120,000	92,000	15,000	13,000
	$258,000	$137,000	$29,000	$24,000	30,000	$38,000
Estimated percentage uncollectible		3%	5%	12%	24%	50%
Total estimated bad debts

 

At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $10,000.

 

Instructions

Calculate the total estimated bad debts based on the above information.

Journalize and post the adjusting entry for bad debts at December 31, 2017. (Use T accounts)

Journalize and post to the allowance account these 2018 events and transactions:

1. March 1, a $600 customer balance originating 2017 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.

  D) Journalize the adjusting entry for bad debts at December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that total estimated bad debts will be $33,200. 

Answer rating: 100% (QA)

1 Total estimated debtors 137000003 29000005 24000012 30000024 3800005 411014502880720019000 34 6... View the full answer