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    Journalize and post to the allowance account

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    Presented here is an aging schedule for Zimmerman Company.
    Please see attachment.

    Customer Total Not Yet Due Number of Days Past Due
    1â?"30 31â?"60 61â?"90 Over 90
    Aaron $22,000 $12,000 $10,000
    Barry 40,000 40,000
    Cara 60,000 16,000 6,000 38,000
    Donald 28,000 28,000
    Others 126,000 96,000 16,000 14,000
    Total $276,000 $152,000 $34,000 $24,000 $38,000 $28,000
    Estimated percentage uncollectible 4% 9% 13% 25% 50%

    Total estimated bad debts $35,760 $6,080 $3,060 $3,120 $9,500 $14,000

    At December 31, 2009, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $11,700

    Instructions:
    (a) Journalize and post the adjusting entry for bad debts at December 31, 2009. (Use T accounts.)

    Dec 31 Account title Amount
    Account title Amount

    Bad Debts Expense Allowance for Doubtful Accounts

    (b) Journalize and post to the allowance account these 2010 events and transactions:
    1. March 1, a $500 customer balance originating in 2009 is judged uncollectible.

    Mar 31 Account title Amount
    Account title Amount

    2. May 31, a check for $500 is received from the customer whose account was written off as uncollectible on
    March 31.

    May 31 Account title Amount
    Account title Amount

    May 31 Account title Amount
    Account title Amount

    (c) Journalize the adjusting entry for bad debts at December 31, 2010, 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
    $33,800

    Dec 31 Account title Amount
    Account title Amount

    © BrainMass Inc. brainmass.com June 4, 2020, 2:13 am ad1c9bdddf
    https://brainmass.com/business/accounting/journalize-post-allowance-account-446861

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    Solution Summary

    The expert journalizes the post to an allowance account.

    $2.19

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