Presented below is an aging schedule for Skysong, Inc.. Number of Days Past DueCustomer Total NotYet Due 1–30 31–60 61–90 Over 90Anders $ 25,300 $11,400 $13,900 Blake 40,500 $ 40,500 Coulson 55,300 15,500 5,700 $34,100 Deleon 35,000 $35,000Others 131,700 95,400 16,000 14,000 6,300 $287,800 $151,400 $33,100 $27,900 $34,100 $41,300Estimated Percentage Uncollectible 1% 5% 13% 26% 45%Total Estimated Bad Debts $ 34,247 $ 1,514 $ 1,655 $ 3,627 $ 8,866 $18,585At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $11,600.Journalize and post the adjusting entry for bad debts at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)DateAccount TitlesDebitCreditchoose a transaction date Mar. 31, 2020/ May 31, 2020/ Dec. 31, 2020/ Mar. 31, 2021/ May 31, 2021/ Dec. 31, 2021enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount Bad Debt Expensechoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a debit amountchoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a credit amountchoose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a debit balancechoose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a credit balanceAllowance for Doubtful Accountschoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a debit amountchoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a credit amountchoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a debit amountchoose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a credit amountchoose the end date of the accounting period enter a debit balancechoose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.enter a credit balancePT 2: Journalize and post to the allowance account the following events and transactions in the year 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)(1) On March 31, a $1,200 customer balance originating in 2020 is judged uncollectible.(2) On May 31, a check for $1,200 is received from the customer whose account was written off as uncollectible on March 31. No.DateAccount Titles and ExplanationDebitCredit(1).choose a transaction date enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount(2).choose a transaction date enter an account title to reverse write-offenter a debit amountenter a credit amount enter an account title reverse write-offenter a debit amountenter a credit amount (To reverse write-off) choose a transaction date enter an account title collection of write-offenter a debit amountenter a credit amount enter an account title collection of write-offenter a debit amountenter a credit amount (To record collection of write-off.) PT 3Bad Debt Expense12/31/20 Adj.22,647 12/31/20 Bal.22,647 Allowance for Doubtful Accounts 12/31/20 Bal.11,600 12/31/20 Adj.22,647 12/31/20 Bal.34,247choose the end date of the accounting period enter a debit balancechoose the end date of the accounting period enter a credit balance

Bad debts are those account receivables, which are due to be received from customers, but has not…

Answered: At December 31, 2020, the unadjusted…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presented below is an aging schedule for Skysong, Inc..

			Number of Days Past Due
Customer	Total	Not Yet Due	1–30	31–60	61–90	Over 90
Anders	$ 25,300		$11,400	$13,900
Blake	40,500	$ 40,500
Coulson	55,300	15,500	5,700		$34,100
Deleon	35,000					$35,000
Others	131,700	95,400	16,000	14,000		6,300
	$287,800	$151,400	$33,100	$27,900	$34,100	$41,300
Estimated Percentage Uncollectible		1%	5%	13%	26%	45%
Total Estimated Bad Debts	$ 34,247	$ 1,514	$ 1,655	$ 3,627	$ 8,866	$18,585

At December 31, 2020, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $11,600.

Journalize and post the adjusting entry for bad debts at December 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles	Debit	Credit
choose a transaction date Mar. 31, 2020/ May 31, 2020/ Dec. 31, 2020/ Mar. 31, 2021/ May 31, 2021/ Dec. 31, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Bad Debt Expense
choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a debit amount	choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a credit amount
choose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a debit balance	choose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a credit balance
Allowance for Doubtful Accounts
choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a debit amount	choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a credit amount
choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a debit amount	choose a transaction date 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a credit amount
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period 12/31/20 Adj.; 5/31/20 Adj.; 3/31/20 Adj.; 12/31/21 Adj.; 5/31/21; 3/31/21; 12/31/20 Bal./ 5/31/20 Bal.; 3/31/20 Bal.; 12/31/21 Bal.	enter a credit balance

PT 2: Journalize and post to the allowance account the following events and transactions in the year 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1)		On March 31, a $1,200 customer balance originating in 2020 is judged uncollectible.
(2)		On May 31, a check for $1,200 is received from the customer whose account was written off as uncollectible on March 31.

No.	Date	Account Titles and Explanation	Debit	Credit
(1).	choose a transaction date	enter an account title	enter a debit amount	enter a credit amount
		enter an account title	enter a debit amount	enter a credit amount
(2).	choose a transaction date	enter an account title to reverse write-off	enter a debit amount	enter a credit amount
		enter an account title reverse write-off	enter a debit amount	enter a credit amount
		(To reverse write-off)
	choose a transaction date	enter an account title collection of write-off	enter a debit amount	enter a credit amount
		enter an account title collection of write-off	enter a debit amount	enter a credit amount
		(To record collection of write-off.)

PT 3

Bad Debt Expense
12/31/20 Adj.	22,647
12/31/20 Bal.	22,647
Allowance for Doubtful Accounts
		12/31/20 Bal.	11,600
		12/31/20 Adj.	22,647
		12/31/20 Bal.	34,247
choose the end date of the accounting period	enter a debit balance	choose the end date of the accounting period	enter a credit balance

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