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Presented below is an aging schedule
for Bosworth Company.
Presented below is an aging schedule for Bosworth Company.
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:
1. March 1, a $600 customer balance originating in 2013 is judged uncollectible.
2. 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, 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.
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