Presented below is an aging schedule for mccann

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Reference no: EM13377929

Presented below is an aging schedule for McCann Company.

	A	B	C	D	E	F	G
1	Customer	Total	Not Yet Due	Number of Days Past Due
2				Number of Days Past Due
3				30-Jan	31-60	61-90	Over 90
4	Amos	$22,000		$10,000	$12,000
5	Brian	40,000	$40,000
6	Chevy	57,000	16,000	6,000		$35,000
7	Drake	34,000					$34,000
8	Others	132,000	96,000	16,000	14,000		6,000
9		$285,000	152,000	$32,000	$26,000	$35,000	$40,000
10	Estimated Percentage Uncollectible		3%	6%	13%	25%	60%


11	Total Estimated Bad Debts	$42,610	$4,560	$1,920	$3,380	$8,750	$24,000
11	Total Estimated Bad Debts	$42,610	$4,560	$1,920	$3,380	$8,750	$24,000
12

At December 31, 2012, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000.

Instructions

(a) Journalize and post the adjusting entry for bad debts at December 31, 2012

(b) Journalize and post to the allowance account the following events and transactions in the year 2013

(1) On March 31, a $1,000 customer balance originating in 2012 is judged uncollectible.

(2) On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31.

(c) Journalize the adjusting entry for bad debts on December 31, 2013, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $28,600.

Reference no: EM13377929

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