Presented below is an aging schedule for Halleran Company.
At December 31, 2019, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $12,000
- Journalize and post the adjusting entry for bad debts at December 31, 2019.
- Journalize and post to the allowance account the following events and transactions in the year 2020
- On March 31, a $1,000 customer balance originating in 2019 is judged uncollectible.
- On May 31, a check for $1,000 is received from the customer whose account was written off as uncollectible on March 31.
- Journalize the adjusting entry for bad debts on December 31, 2020, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $800 and the aging schedule indicates that total estimated bad debts will be $31,600