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    Journalizing and Posting for Bad Debts

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    I need help in determining what amounts I need to use for the adjusting entries for bad debts and also how to journalize those when funds are collected later on as well.

    Presented below is an aging schedule for Lewis Company.
    Customer Total: Not Yet Due: Number of Days Past Due
    1-30 31-60 61-90 Over 90
    Anders $20,000 $9,000 $11,000
    Baietto 30,000 $30,000
    Cyrs 50,000 15,000 5,000 $30,000
    DeJong 38,000 $38,000
    Others 126,000 92,000 15,000 13,000 6,000
    $264,000 $137,000 $29,000 $24,000 $30,000 $44,000
    Estimated Percentage Uncollectible 2% 5% 10% 24% 50%
    Total Estimated Bad Debit $35,790 $2,740 $1,450 $2,400 $7,200 $22,000

    At December 31, 2006, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000

    Instructions:
    (a) Journalize and post the adjusting entry for bad debts at December 31, 2006.
    Total Estimated Bad Debit Amount Debit / Credit
    Current balance of Allowance for Doubtful Accounts Amount Debit / Credit
    Required journal entry value Formula Debit / Credit

    12/31/06 Account title Amount
    Account title Amount

    (b) Journalize and post to the allowance account the following events and transactions in the year 2007.
    (b)(1) March 1, an $1,100 customer balance originating in 2006 is judged uncollectible.
    03/01/07 Account title Amount
    Account title Amount

    (b)(2) May 1, a check for $1,100 is received from the customer whose account was written off as uncollectible on March 1.
    05/01/07 Account title Amount
    Account title Amount

    05/01/07 Account title Amount
    Account title Amount

    (c) Journalize the adjusting entry for bad debts on December 31, 2007. Assume that the unadjusted balance in Allowance for Doubtful
    Accounts is a debit of $1,200 and the aging schedule indicates that total estimated bad debts will be $31,300
    Total Estimated Bad Debit Amount Debit / Credit
    Current balance of Allowance for Doubtful Accounts Amount Debit / Credit
    Required journal entry value Formula Debit / Credit

    12/31/07 Account title Amount
    Account title Amount
    ($31,300 + $1,200)
    Bad Debts Expense
    Date Explanation Ref. Debit Credit Balance
    12/31/06 Amount Formula
    ($31,300 + $1,200)
    Allowance for Doubtful Accounts
    Date Explanation Ref. Debit Credit Balance
    12/31/06 Amount Formula
    12/31/06 Amount Formula

    12/31/07 Amount Formula
    12/31/07 Amount Formula
    ($31,300 + $1,200)

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    https://brainmass.com/business/auditing/journalizing-and-posting-for-bad-debts-206264

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    Presented below is an aging schedule for Lewis Company.
    Customer Total: Not Yet Due: Number of Days Past Due
    1-30 31-60 61-90 Over 90
    Anders $20,000 $9,000 $11,000
    Baietto 30,000 $30,000
    Cyrs 50,000 15,000 5,000 $30,000
    DeJong 38,000 $38,000
    Others 126,000 92,000 15,000 13,000 6,000
    $264,000 $137,000 $29,000 $24,000 $30,000 $44,000
    Estimated Percentage Uncollectible 2% 5% 10% 24% 50%
    Total Estimated Bad Debit $35,790 $2,740 $1,450 $2,400 $7,200 $22,000

    At December 31, 2006, the unadjusted balance in Allowance for Doubtful Accounts is a ...

    Solution Summary

    The solution explains the calculations and journal entries relating to bad debts.

    $2.19

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