Presented below is an aging schedule for Gille Company.

Problem 8-3A

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		$ 32,000				$ 10,000		$22,000
Bird		35,300		$ 35,300
Cope		61,900		8,200		7,800				$45,900
DeSpears		39,500										$39,500
Others		132,200		72,400		42,800		17,000
		$300,900		$115,900		$60,600		$39,000		$45,900		$39,500
Estimated percentage uncollectible				5%		9%		12%		22%		68%
Total estimated bad debts		$ 52,887		$ 5,795		$5,454		$4,680		$ 10,098		$26,860

At December 31, 2011, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,600.

 

Journalize and post the adjusting entry for bad debts at December 31, 2011. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Post entries in the order of journal entries posted in the previous part.

Journalize the 2012 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.	March 1, a $860 customer balance originating in 2011 is judged uncollectible.
2.	May 1, a check for $860 is received from the customer whose account was written off as uncollectible on March 1.

Post to the allowance account these 2012 events. (Post entries in the order of journal entries posted in the previous part.)

Journalize the adjusting entry for bad debts at December 31, 2012, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $3,000 and the aging schedule indicates that total estimated bad debts will be $52,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

 

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