Question

ournalize the 2022 transactions: (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

1.	March 1, a $600 customer balance originating in 2021 is judged uncollectible.
2.	May 1, a check for $600 is received from the customer whose account was written off as uncollectible on March 1.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	choose a transaction date                                                                      Mar. 1May 1Dec. 31	enter an account title to record the first transaction	enter a debit amount	enter a credit amount
		enter an account title to record the first transaction	enter a debit amount	enter a credit amount
2.	choose a transaction date                                                                      Mar. 1May 1Dec. 31	enter an account title to record the second transaction to reinstate the account previously written off	enter a debit amount	enter a credit amount
		enter an account title to record the second transaction to reinstate the account previously written off	enter a debit amount	enter a credit amount
		(To reinstate account previously written off)
		enter an account title to record the second transaction	enter a debit amount	enter a credit amount
		enter an account title to record the second transaction	enter a debit amount	enter a credit amount

Post to the allowance account these 2022 events. (Post entries in the order of journal entries posted in the previous part.)

Allowance for Doubtful Accounts
2021			12/31	Bal.	7,200
			12/31		34,309
			12/31	Bal.	41,509
2022
choose a transaction date                                                                      3/15/112/31		enter a debit amount	choose a transaction date                                                                      3/15/112/31		enter a credit amount

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List of Accounts

  

  

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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 $1,600 and the aging schedule indicates that total estimated bad debts will be $34,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit
enter an account title for the adjusting entry on December 31, 2022	enter a debit amount	enter a credit amount
enter an account title for the adjusting entry on December 31, 2022	enter a debit amount	enter a credit amount

Answer 1

1)

Date	Account title	Debit	credit
March 1	Allowance for Doubtful Accounts	600
	Accounts receivable		600
May 1	Accounts receivable	600
	Allowance for Doubtful Accounts		600
	[Being account reinstated]
	cash	600
	Accounts receivable		600

2)

Date	Account title	Debit	credit
December 31 2021	Bad debt expense	36100
	Allowance for Doubtful Accounts		36100

Bad debt expense = Estimated uncollectible account balance at year end - unadjusted balance

= 34500-(-1600)

= 34500+1600

= 36100

ALLOWANCE FOR DOUBTFUL ACCOUNT
Bal 12/31/2022	1600	12/31/2022	36100
		Bal 12/31/2022	34500