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15 views

Tutorial Test 07

Uploaded by

nguyhiemisreal123
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Chapter 9: Accounting for Receivables

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 $ 22,000 $ 10,000 $ 12,000
Blake 40,000 $ 40,000
Coulson 57,000 16,000 6,000 35,000
Deleon 34,000 34,000
Others 132,000 96,000 16,000 14,000 6,000
$ 285,000 $ 152,000 $ 32,000 $ 26,000 $ 35,000 $ 40,000
Estimated
Percentage
Uncollectible 3% 6% 13% 25% 50%
Total Estimated
Bad Debts $ 38,610 $ 4,560 $ 1,920 $ 3,380 $ 8,750 $ 20,000

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.
(2) On May 31, a check for $1,000 is received from the customer whose account was written off as u
on March 31.
( c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted bal
the Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estim
debts will be $31,600.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

(a)
Dec. 31 Account Value
Account

Bad Debt Expense


Date Explanation Ref. Debit
2017
Dec. 31 Adjusting Value

Allowance for Doubtful Accounts


Date Explanation Ref. Debit
2017
Dec. 31 Balance
Dec.31 Adjusting
2018
Mar. 31 Value
31-May

2018
(b) (1) Mar. 31 Account
Account

(b) (2)
May 31 Account
Account

May 31 Account
Account

(c) 2018
Dec 31 Account
Account

After you have completed the requirements of the above question, consider this additional question.
Answers are on the other tab in this file.
1. Suppose the amount uncollectible on March 31 is changed to $1,800 and no cash was received from cu
the write-off of accounts receivable. What would be the balance of the Allowance for Doubtful Accounts
2. Suppose the balance in the Allowance for Doubtful Accounts before adjustment was $2,100 debit. An a
that total estimated bad debts will be $38,000. What is the year-end adjustment for bad debts for 2017?
credit of $12,000.

n the year 2018.

was written off as uncollectible

t the unadjusted balance in


icates that total estimated bad

n cells with a "?" .

Value

Credit Balance

Value

Credit Balance

12,000
Value ?

?
Value ?

Value
Value

Value
Value

Value
Value

Value
Value

was received from customer subsequent to


or Doubtful Accounts before adjustment?
s $2,100 debit. An aging schedule indicates
bad debts for 2017?

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