question archive Presented below is an aging schedule for Bosworth Company
Subject:AccountingPrice:2.85 Bought3
Presented below is an aging schedule for Bosworth Company.
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At December 31, 2013, 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, 2013. (Use T-accounts.) |
(b) | Journalize and post to the allowance account these 2014 events and transactions:
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(c) |
Journalize the adjusting entry for bad debts at December 31, 2014, 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. |
a. Total Estimated Bad Debts = 42,400
Credit Balance of Allowance = 8,000
Amount required to be transferred = 42,400 - 8,000 = $34,400
Journal Entry:
Date | Account Title | Debit | Credit |
xxx | Bad Debts Expenses | 34,400 | |
Allowance for Doubtful Debts | 34,400 | ||
b. Journal entries:
Date | Account Title | Debit | Credit |
March 1 | Allowance for Doubtful Debts | 600 | |
Account Receivable | 600 | ||
May 1 | Account Receivable | 600 | |
Allowance for Doubtful Debts | 600 | ||
May 1 | Bank | 600 | |
Account Receivable | 600 |
c) Journal Entry:
Date | Account Title | Debit | Credit |
Dec31 2014 | Bad Debts Expenses | 38,100 | |
Allowance for Doubtful Debts | 38,100 | ||
Allowance for Doubtful Debts = 1400 + 36700 = 38,100