CH 8 Zander Company - Chapter 8 Practical Exercises PDF

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Chapter 8 Practical Exercises...

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Name: Maria Faura Pardo Instructor: Financial Accounting, Sixth Edition by Kimmel, Weygandt, and Kieso Primer on Using Excel in Accounting by Rex A Schildhouse

Date: 09/3 Course:

P8-3B, Journalize transactions related to bad debts. Presented here is an aging schedule for Zander Company. Customer Amy Bergin Curt David Others

Total

Total

$22.000 40.000 65.000 28.000 126.000 $281.000

Estimated percentage uncollectible Total estimated bad debts

$37.910

Not Yet Due

Number of Days Past Du 31–60 61–90

1–30

$12.000

$10.000

40.000 14.000

6.000

96.000 $150.000

16.000 $34.000

14.000 $24.000

4%

9%

15%

$6.000

$3.060

45

$3.600

At December 31, 2011, the unadjusted balance in Allowance for Doubtful Accounts is a credit of Instructions: (a) Journalize and post the adjusting entry for bad debts at December 31, 2011. (Use T accounts.)

$45.

$11. $

Dec 31

Bad debt expense Allowance for doubtfull acounts

Bad Debts Expense

Dec 31. Adj

26.210 2

Allowance for Doubtful Acco Dec 31. Una

26.210

Dec 31. Ad Bal

(b) Journalize and post to the allowance account these 2012 events and transactions: 1. March 1, a $500 customer balance originating in 2011 is judged uncollectible.

Mar 31

2. May 31, a check for March 31.

Allowance for Doubtful AccountsAccounts Receivable $500

500

is received from the customer whose account was written off as unco

May 31

Accounts Receivable Allowance for Doubtful Accounts-

500

May 31

Cah Accounts Receivable

500

(c) Journalize the adjusting entry for bad debts at December 31, 2012, assuming that the unadjusted balance in Allowa for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad $35.300

Dec 31

Bad debt expense Accounts Receivable

36.100 3

30/2019

ue Over 90

.000 28.000 000 25% 250 11.700

$28.000 50% $14.000

6.210

ounts adj

j

11.700 26.210 37.910

500 ollectible on

500

500 ance d debts will be

6.100...