Problem - Presented below is an aging schedule for Bosworth Company.
|
Customer
|
Total
|
Not Yet Due
|
Number of Days Past Due
|
|
1-30
|
31-60
|
61-90
|
Over 90
|
|
Aneesh
|
$ 30,400
|
|
$ 8,400
|
$22,000
|
|
|
|
Bird
|
48,000
|
$ 48,000
|
|
|
|
|
|
Cope
|
58,500
|
7,800
|
7,400
|
|
$43,300
|
|
|
DeSpears
|
45,800
|
|
|
|
|
$45,800
|
|
Others
|
138,000
|
83,800
|
37,100
|
17,100
|
|
|
|
$320,700
|
$139,600
|
$52,900
|
$39,100
|
$43,300
|
$45,800
|
|
Estimated percentage uncollectible
|
|
2%
|
8%
|
11%
|
27%
|
72%
|
|
Total estimated bad debts
|
$ 55,992
|
$ 2,792
|
$4,232
|
$4,301
|
$ 11,691
|
$32,976
|
At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,400.
Journalize the adjusting entry for bad debts at December 31, 2013.
Post the adjusting entry for bad debts at December 31, 2013.
Journalize the 2014 transactions:
1. March 1, a $690 customer balance originating in 2013 is judged uncollectible.
2. May 1, a check for $690 is received from the customer whose account was written off as uncollectible on March 1.
Post to the allowance account these 2014 events.
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 $1,500 and the aging schedule indicates that total estimated bad debts will be $50,000.