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Bad Debt Accounting and journal entries

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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Solution Summary

The bad debt accounting and journal entries are examined.

$2.19