Name: Guillem Laudo Date: 10/01/18
Instructor: Jordi Morrós Ribera Course: Financial Accounting
P8-3A, Journalize transactions related to bad debts.
Presented below is an aging schedule for Gille Company.
Customer Total Not Yet Due
Number of Days Past Due
1–30 31–60 61–90 Over 90
Aneesh $24,000 $9,000 $15,000
Bird 30,000 30,000
Cope 50,000 5,000 5,000 40,000
DeSpears 38,000 38,000
Others 120,000 72,000 35,000 13,000
Total $262,000 $107,000 $49,000 $28,000 $40,000 $38,000
3% 7% 12% 24% 60%
Total estimated bad debts $42,400 $3,210 $3,430 $3,360 $9,600 $22,800
At December 31, 2011, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $8,000
Instructions:
Dec 31, 11 Bad Debts Expense 34,000
Allowance for Doubtful Accounts 34,400
($42,400 – $8,000)
Bad Debts Expense Allowance for Doubtful Accounts
12/31/11 34,400 12/31/11 Bal 8,000
Financial Accounting, Sixth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse
Estimated percentage
uncollectible
(a) Journalize and post the adjusting entry for bad debts at December 31, 2011. (Use T accounts.)
