Question

The following transactions were completed by Daws Company during the current fiscal year ended December 31:

Jan. 29	Received 45% of the $18,700 balance owed by Kovar Co., a bankrupt business, and wrote off the remainder as uncollectible.
Apr. 18	Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,270 cash in full payment of Clark’s account.
Aug. 9	Wrote off the $6,360 balance owed by Iron Horse Co., which has no assets.
Nov. 7	Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of $3,975 cash in full payment of the account.
Dec. 31	Wrote off the following accounts as uncollectible (one entry): Beth Connelly Inc., $7,265; DeVine Co., $5,595; Moser Distributors, $9,305; Oceanic Optics, $1,150.
Dec. 31	Based on an analysis of the $1,759,500 of accounts receivable, it was estimated that $35,190 will be uncollectible. Journalized the adjusting entry.

1.	Record the January 1 credit balance of $25,685 in a T account for Allowance for Doubtful Accounts.
2.	B. Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense.

Allowance for Doubtful Accounts
Jan. 29		Jan. 1 Balance
Aug. 9		Apr. 18
Dec. 31		Nov. 7
		Dec. 31 Adjusting Entry
Dec. 31 Unadjusted Balance		Dec. 31 Adj. Balance

Bad Debt Expense

Answer 1

Allowance for Doubtful Accounts
Jan. 29	$           10,285	Jan. 1 Balance	$       25,685
Aug. 9	$              6,360	Apr. 18	$         7,270
Dec. 31	$           23,315	Nov. 7	$         3,975
Dec. 31 Unadjusted Balance	$              3,030
		Dec. 31 Adjusting Entry	$       38,220
		Dec. 31 Adj. Balance	$       35,190
Bad Debt Expense
Dec. 31 Adjusting Entry	$           38,220
Dec. 31 Balance	$           38,220