Problem 8-3A

Presented below is an aging schedule for Bosworth Company.

Customer		Total		Not Yet Due		Number of Days Past Due
						130		3160		6190		Over 90
Aneesh		$ 27,000				$ 11,000		$16,000
Bird		36,800		$ 36,800
Cope		49,400		6,400		6,300				$36,700
DeSpears		37,500										$37,500
Others		132,400		84,800		33,300		14,300
		$283,100		$128,000		$50,600		$30,300		$36,700		$37,500
Estimated percentage uncollectible				4%		8%		11%		23%		59%
Total estimated bad debts		$ 43,067		$ 5,120		$4,048		$3,333		$ 8,441		$22,125

At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $6,000.

Journalize the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Post the adjusting entry for bad debts at December 31, 2013.

Bad Debts Expense
Allowance for Doubtful Accounts

Journalize the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.	March 1, a $700 customer balance originating in 2013 is judged uncollectible.
2.	May 1, a check for $700 is received from the customer whose account was written off as uncollectible on March 1.

No.	Date	Account Titles and Explanation	Debit	Credit
1.
2.
		(To reinstate account previously written off)

Post to the allowance account these 2014 events. (Post entries in the order of journal entries posted in the previous part.)

Allowance for Doubtful Accounts
2013		12/31	Bal.	6,000
		12/31		37,067
		12/31	Bal.	43,067
2014

Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,100 and the aging schedule indicates that total estimated bad debts will be $46,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit