Question

resented below is an aging schedule for Wildhorse Company on December 31, 2021. Wildhorse sells all of its goods on account with terms n/30.

						Number of Days Past Due
Customer		Total		Not yet Due		1–30		31–60		61–90		Over 90
Akers		$18,800				$8,500		$10,300
Barrett		28,200		$28,200
Corner		47,000		14,100		4,700				$28,200
DeJong		35,700										$35,700
Other		118,400		86,500		14,100		12,200				5,600
		$248,100		$128,800		$27,300		$22,500		$28,200		$41,300
Estimated percentage uncollectible				2%		5%		8%		27%		54%

At December 31, 2021, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $9,400.

Using the above aging schedule, determine the total estimated uncollectible accounts at December 31, 2021.

Total estimated uncollectible accounts

$

Prepare the adjusting journal entry to record bad debt expense. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
(To record estimate of uncollectible accounts.)

Answer 1

Adjusting journal entry to record bad debt expense:

Date	General Ledger	Debit	Credit
31-Dec-21	Bad Debt	$      26,257
	Allowance for Doubtful Accounts		$      26,257

Workings:

Bad debt calculation:

Customer	Total	Not yet due	Due 1-30 days	Due 31-60 days	Due 61-90 days	90 Over
Akers	$    18,800		$            8,500
Barrett	$    28,200	$      28,200		$             10,300
Corner	$    47,000	$      14,100	$            4,700		$             28,200
DeJong	$    35,700					$ 35,700
Other	$ 118,400	$      86,500	$          14,100	$             12,200		$    5,600
	$ 248,100	$   128,800	$          27,300	$            22,500	$            28,200	$ 41,300
Estimated percentage uncollectible		2%	5%	8%	27%	54%
Bad debt	$   35,657	$        2,576	$            1,365	$               1,800	$               7,614	$ 22,302

Calculation of adjusted Bad debt:
Bad debt	$       35,657
Less: Beginning credit balance in Allowance for Doubtful Accounts	$         9,400
Adjusted bad debt to be recorded	$       26,257