Presented below is an aging schedule for Pearl Industries at December 31, 2021.
Customer Total Not Yet
Due Number of Days Past Due
1–30 31–60 61–90 Over
90
Aneesh $ 22,000 $ 8,200 $13,800 Bird 30,500 $ 30,500 Cope 46,000 5,300 4,500 $36,200 DeSpears 36,200 $36,200
Others 126,000 78,500 34,400 13,100 $260,700 $114,300 $47,100 $26,900 $36,200 $36,200
Estimated percentage
uncollectible 3% 7% 13% 26% 62%
Total estimated bad debts $ 42,079 $ 3,429 $3,297 $3,497 $ 9,412 $22,444
At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $7,500.
Journalize the adjusting entry for bad debts at December 31, 2021 AND Post the adjusting entry for bad debts at December 31, 2021.AND Journalize the 2022 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
1. March 1, a $620 customer balance originating in 2021 is judged uncollectible.
2. May 1, a check for $620 is received from the customer whose account was written off as uncollectible on March 1.
AND
Post to the allowance account these 2022 events. AND
Journalize the adjusting entry for bad debts at December 31, 2022, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $1,200 and the aging schedule indicates that total estimated bad debts will be $38,400.