Accounting problem 8-3: Number of Days Past Due Customer Total Not Yet Due 1–30
ID: 2545337 • Letter: A
Question
Accounting problem 8-3:
Number of Days Past Due
Customer
Total
Not
Yet Due
1–30
31–60
61–90
Over 90
Bad Debts Expense
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Adjusting
Allowance for Doubtful Accounts
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31
Balance
Dec. 31
Adjusting
SHOW LIST OF ACCOUNTS
LINK TO TEXT
No.
Date
Account Titles and Explanation
Debit
Credit
(To reverse write-off)
(To record collection of write-off.)
Allowance for Doubtful Accounts
Date
Explanation
Ref.
Debit
Credit
Balance
Dec. 31 2017
Balance
11,200
Dec. 31 2017
Adjusting
26,067
37,267
Mar. 31 2018
May 31 2018
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles
Debit
Credit
Presented below is an aging schedule for Halleran Company.Number of Days Past Due
Customer
Total
Not
Yet Due
1–30
31–60
61–90
Over 90
Anders $ 22,300 $10,500 $11,800 Blake 40,600 $ 40,600 Coulson 57,600 16,900 6,700 $34,000 Deleon 33,500 $33,500 Others 133,200 96,600 16,700 13,600 6,300 $287,200 $154,100 $33,900 $25,400 $34,000 $39,800 Estimated Percentage Uncollectible 1% 6% 13% 25% 55% Total Estimated Bad Debts $ 37,267 $ 1,541 $ 2,034 $ 3,302 $ 8,500 $21,890At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $11,200.
Explanation / Answer
Journal Entry in the Books of Halleran Company Allowance for Doubtful Account S. No. Date Account Desription , Title Debit Credit Date Explantation Ref Debit Credit Balance a 31/12/2017 Bad Debt Expense $26,067 Dec 31,2017 Balance $11,200 Allowance for Dobtful Account $26,067 Dec 31,2017 Adjusting a $26,067 $37,267 To Record Bad debt Expense Mar 31,2018 Adjusting b $1,000 $36,267 (Estimated Bad debt($37267)- balance in allowance for Doubtful Debt Account($11200) May31,2018 Adjusting b1 $1,000 $37,267 b 31/03/2018 Allowance for Doubtful Debt $1,000 Account Receivable $1,000 To record Uncollection customer a/c b1 31/05/2018 Account Receivable $1,000 Allowance for Doubtful Debt $1,000 To record revesal of Allowance for Debt a/c b1 31/05/2018 Cash $1,000 Account Receivable $1,000 To record cash received c. 31/12/2018 Bad Debt Expense $29,530 Allowance for Dobtful Account $29,530 To Record Bad debt Expense (Estimated Bad debt($30400)- balance in allowance for Doubtful Debt Account($870)