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    Bad Debt Accounting and journal entries

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    See excel where formatting is readable:

    Presented below is an aging schedule for Joplin Company.
    Customer Total Not Yet Due Number of Days Past Due
    1-30 31-60 61-90 Over 90
    Adisy $20,000 $9,000 $11,000
    Bloom 30,000 $30,000
    Cai 50,000 5,000 5,000 $40,000
    Dahl 38,000 $38,000
    Others 120,000 72,000 35,000 13,000
    Total $258,000 $107,000 $49,000 $24,000 $40,000 $38,000
    "Estimated percentage
    uncollectible" 3% 5% 12% 24% 50%

    "Total estimated
    bad debts" $37,140 $3,210 $2,450 $2,880 $9,600 $19,000

    At December 31, 2007, 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, 2007. (Use T accounts.)

    Dec 31 Account title Amount
    Account title Amount
    Text or detail

    Bad Debts Expense Allowance for Doubtful Accounts

    (b) Journalize and post to the allowance account these 2008 events and transactions:
    1. March 1, a $600 customer balance originating in 2007 is judged uncollectible.

    Mar 01 Account title Amount
    Account title Amount

    2. May 1, a check for $600 is received from the customer whose account was written off as
    uncollectible on March 1.

    May 01 Account title Amount
    Account title Amount

    May 01 Account title Amount
    Account title Amount

    (c) Journalize the adjusting entry for bad debts at December 31, 2008, assuming that the unadjusted balance in
    Allowance for Doubtful Accounts is a debit of $1,100 and the aging schedule indicates that total estimated
    bad debts will be $32,700

    Dec 31 Account title Amount
    Account title Amount
    Text or detail

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    https://brainmass.com/business/financial-accounting-bookkeeping/bad-debt-accounting-journal-entries-344827

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    Solution Summary

    The bad debt accounting and journal entries are examined.

    $2.19