Acc280 Financial Accounting: P9-3A Presented below is an aging schedule for Zillmann

Acc280 Financial Accounting

P9-3A
Presented below is an aging schedule for Zillmann Company:
Number of Days Past Due
Customer: Total: Not yet due: 1 ~ 30 31 ~ 60 61 ~ 90 Over 90
Arndt $22,000 $10,000 $12,000
Blair 40,000 $40,000
Chase 57,000 16,000 6,000 $35,000
Drea 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 % Uncollectible 3% 6% 13% 25% 60%
Total Est. Bad Debts $42,610 $4,560 $1,920 $3,380 $8,750 $24,000

At December 31, 2010, the unadjusted balance in Allowance for Doubtful Accounts is credit of $12,000.

Instructions:
(a) Journalize and post the adjusting entry for bad debts at December 31, 2010.
(b) Journalize and post to the allowance account the following events and transactions in the year 2011:
(1) March 31, a $1,000 customer balance originating in 2010 is judged uncollectible.
(2) May 31, a check for $1,000 is received from the customers whose account was written off as uncollectible on March 31.
(c) Journalize the adjusting entry for bad debts on December 31, 2011. Assume 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
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