In-Class Question 5 Presented below is an aging schedule for Bosworth Company. Customer Total Not Yet Due Number of Days Past Due 0-30 Aneesh $24,000 $9,000 31-60 $15,000 61-90 Over 90 Bird $30,000 $30,000 Cope $50,000 $5,000 $5,000 $40,000 DeSpears $38,000 $38,000 Others $120.000 $262.000 $72.000 $107,000 $13,000 $35.000 $28,000 $49.000 $40,000 $38.000 Estimated percentage 3% 7% 12% 24% 60% uncollectible Total estimated bad $42.400 $3.210 $3.430 $3,360 $9,600 $22,800 debts At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000. (a) Journalize the adjusting entry for bad debts at December 31, 2021. (b) Journalize these 2022 events and transactions: March 1, a $600 customer balance originating in 2019 is judged uncollectible. May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1. (c) Journalize the adjusting entry for bad debts at December 31, 2022, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.
In-Class Question 5 Presented below is an aging schedule for Bosworth Company. Customer Total Not Yet Due Number of Days Past Due 0-30 Aneesh $24,000 $9,000 31-60 $15,000 61-90 Over 90 Bird $30,000 $30,000 Cope $50,000 $5,000 $5,000 $40,000 DeSpears $38,000 $38,000 Others $120.000 $262.000 $72.000 $107,000 $13,000 $35.000 $28,000 $49.000 $40,000 $38.000 Estimated percentage 3% 7% 12% 24% 60% uncollectible Total estimated bad $42.400 $3.210 $3.430 $3,360 $9,600 $22,800 debts At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000. (a) Journalize the adjusting entry for bad debts at December 31, 2021. (b) Journalize these 2022 events and transactions: March 1, a $600 customer balance originating in 2019 is judged uncollectible. May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1. (c) Journalize the adjusting entry for bad debts at December 31, 2022, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that total estimated bad debts will be $36,700.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In-Class Question 5
Presented below is an aging schedule for Bosworth Company.
Customer
Total
Not Yet
Due
Number of Days Past Due
0-30
Aneesh
$24,000
$9,000
31-60
$15,000
61-90
Over 90
Bird
$30,000
$30,000
Cope
$50,000
$5,000 $5,000
$40,000
DeSpears
$38,000
$38,000
Others
$120.000
$262.000
$72.000
$107,000
$13,000
$35.000
$28,000
$49.000
$40,000 $38.000
Estimated
percentage
3%
7%
12%
24%
60%
uncollectible
Total
estimated bad
$42.400
$3.210
$3.430
$3,360
$9,600
$22,800
debts
At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000.
(a) Journalize the adjusting entry for bad debts at December 31, 2021.
(b) Journalize these 2022 events and transactions:
March 1, a $600 customer balance originating in 2019 is judged uncollectible.
May 1, a check for $600 is received from the customer whose account was written off as
uncollectible on March 1.
(c) Journalize the adjusting entry for bad debts at December 31, 2022, assuming that the unadjusted
balance in Allowance for Doubtful Accounts is a debit of $1,400 and the aging schedule indicates that
total estimated bad debts will be $36,700.
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