Problem 9-03A a-c (Part Level Submission)

Presented below is an aging schedule for Halleran Company.

						Number of Days Past Due
Customer		Total		Not Yet Due		130		3160		6190		Over 90
Anders		$ 22,000				$10,000		$12,000
Blake		40,000		$ 40,000
Coulson		57,000		16,000		6,000				$35,000
Deleon		34,000										$34,000
Others		132,000		96,000		16,000		14,000				6,000
		$285,000		$152,000		$32,000		$26,000		$35,000		$40,000
Estimated Percentage Uncollectible				3%		6%		13%		25%		50%
Total Estimated Bad Debts		$ 38,610		$ 4,560		$ 1,920		$ 3,380		$ 8,750		$20,000

At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.

Journalize and post to the allowance account the following events and transactions in the year 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.		On March 31, a $1,000 customer balance originating in 2020 is judged uncollectible.
2.		On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Mar. 31
2.	May 31
		(To reverse write-off)
	May 31
		(To record collection of write off.)

Allowance for Doubtful Accounts
Date	Explanation	Ref.	Debit	Credit	Balance
Dec. 31, 2020	Balance				12,000
Dec. 31, 2020	Adjusting			26,610	38,610
Mar. 31, 2021
May 31, 2021

Journalize the adjusting entry for bad debts on December 31, 2021, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $31,600. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles	Debit	Credit
Dec. 31