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Allowance for Doubful Accounts96,000 (d)Sales Revenue3,700,000 Returns & Allowances50,000 Net Revenue3,650,000 Accounts Receivable 12/31/16$ 960,000 Less Allowances for Doubful Acct80,000 Net Accounts Receivable 12/31/16$ 880,000 Accounts Receivable 12/31/171,710,000 Less: Allowances for Doubtful Accounts19,000 Less: Adjustment to Allowances for Doubtful Accounts96,000 Net Accounts Receivable 12/31/171,595,000 Net Revenue3,650,000 Average Accounts Receivable1,237,500 Accounts Receivable Turnover2.95
Problem 9-3A, p. 435Journalize entries to record transactions related to bad debtsPresented below is an aging schedule for Halleran Company.Number of Days Past DueCustomerTotalNot yet Due1-3031-6061-90Over 90Anders$ 22,000 $ 10,000 $ 12,000 Blake40,000 $ 40,000 Coulson57,000 16,000 6,000 35,000 Deleon34,000 34,000 Others132,000 96,000 16,000 14,000 6,000 $ 285,000 $ 152,000 $ 32,000 $ 26,000 $ 35,000 $ 3%6%13%25%50%$ 38,610 $ 4,560 $ 1,920 $ 3,380 $ 8,750 $ At December 31, 2017, the unadjusted balance in Allowance for Doutful Accounts is a credit of $12,000.Instructions:(a) Journalize and post the adjusting entry for bad debts at December 31, 2017.(b) Journalize and post the allowance account the following events and transactions in the year 2018.(1) On March 31, a $1,000 customer balance originating in 2017 is judged uncollectible.Estimated Percentage UncollectibleTotal Estimated Bad Debts(2) On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31.( c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in the Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that that estimated bad debts will be $31,600.40,000 20,000 (a) Dec.31Bad Debt Expense26,610Allowance for Doubtful Accounts26,610Bad Debt Expense DateExplanationRef.Debit CreditBalance 2017Dec.31 Adjusting26,61026,610Allowance for Doubtful AccountsDateExplanationRef.Debit CreditBalance 2017Dec.31 Balance12,00031 Adjusting26,61038,6102018Mar.311,00037,610May311,00038,6102018Mar.31(b) (1)Allowance for Doubtful Accounts1,000Accounts Receivable1,000May31(b) (2)Accounts Receivable1,000Allowance for Doubtful Accounts1,000May31Cash1,000Accounts Receivable1,000Dec.31(c)Bad Debt Expense32,400 Allowance for Doubtful Accounts32,400