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Question 3 Presented below is an aging schedule for Blossom AG. Customer Anders Blake Cyrs De Jong Others Number of Days Past Due Total Not 1-30 Yet Due 31-60 61-90 Over 90 $ 30,000 $13,500 $16,500 43,100 $ 43,100 61,800 17,400 6,700 $37,700 37,000 $37,000 139,700 97,400 18,700 15,800 7,800 $311,600 $157,900 $38,900 $32,300 $37,700 $44,800 3% 5% 13% 26% 61% $ 48,011 $ 4,737 $ 1,945 $ 4,199 $ 9,802 $27,328 Estimated percentage uncollectible Total estimated bad debts At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of $9,787. Journalize and post the adjusting entry for bad debts at December 31, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Bad Debt Expense Date Explanation Ref Debit Credit Balance Dec. 31 Adjusting Allowance for Doubtful Accounts Date Explanation Ref Debit Credit Balance Dec. 31 Balance Dec. 31 Adjusting Journalize and post to the allowance account the following events and transactions in the year 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) On March 31, a $1,290 customer balance originating in 2017 is judged uncollectible. (2) On May 31, a check for $1,290 is received from the customer whose account was written off as uncollectible on March 31. No. Date Account Titles and Explanation Debit Credit (1). Mar. 31 (2). May 31 (To record recovery of bad debts). May 31 (To record recovery of bad debts). May 31 (To record amount received). Debit Credit Balance Allowance for Doubtful Accounts Date Explanation Ref 2017 Dec. 31 Balance Dec. 31 Adjusting 2018 9,787 48,011 38,224 ournalize the adjusting entry for bad debts on December 31, 2018, assuming that the unadjusted balance in Allowance for Doubtful Accounts is a debit of $840 and the aging schedule indicates that total estimated bad debts will be $30,800. (Credit account titles are utomatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. 31

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