Acc291 Principles of Accounting: P8-3A Presented below is an aging schedule for Bosworth Company

Acc291 Principles of Accounting Problem 8-3A Journalize transactions related to bad debts Presented below is an aging schedule for Bosworth Company: Number of Days Past Due Customer Total Not Yet Due 1-30 31-60 61-90 Over 90 Aneesh 22,700 8,700 14,000 Bird 33,400 33,400 Cope 56,900 7,100 6,400 43,400 DeSpears 42,900 42,900 Others 146,800 78,300 48,600 19,900 $302,700 $118,800 $63,700 $33,900 $43,400 $42,900 Estimated percentage uncollectible 2% 7% 14% 21% 67% Total estimated bad debts $49,438 2,376 4,459 4,746 9,114 28,743 At December 31, 2013, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,000. Instructions: a. Journalize and post the adjusting entry for bad debts at December 31, 2013. (Credit account titles are automatically indented when amount is entered. Do not indent manually). b. Journalize and post the 2014 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually). 1. March 1, a $770 customer balance originating in 2013 is judged uncollectible. 2. May 1, a check for $770 is received from the customer whose account was written off as uncollectible on March 1. c. Journalize the adjusting entry for bad debts at December 31, 2014, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,100 and the aging schedule indicates that total estimated bad debts will be $50,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually).
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