PROBLEM 13A-3
T.J. RADCLIFF
GENERAL JOURNAL
PAGE 4
Date
Account Titles and Description
PR
Dr.
Cr.
13
Bad Debts Expense
1
9
0
0
00
Accounts Receivable—S. Rose
1
9
0
0
00
To Write off Account
14
Bad Debts Expense
6
5
0
00
Accounts Receivable—P. Soy
6
5
0
00
To Write off Account
8
Accounts Receivable—P. Soy
6
5
0
00
Bad Debts Recovered
6
5
0
00
To record recovered portion
8
Cash
6
5
0
00
Accounts Receivable—P. Soy
6
5
0
00
To record customer payment
7
Bad Debts Expense
3
1
5
00
Accounts Receivable—J. Milot
3
1
5
00
To Write off Account
12
Bad Debts Expense
4
2
5
00
Accounts Receivable—D. Losee
4
2
5
00
To Write off Account
PROBLEM 13A-4
(a)
SHERRILLCOMPANY
GENERAL JOURNAL
Page 2
Account Titles and Description
PR
Dr.
Cr.
2015
Jan.
9
Accounts Receivable – Rick’s Supply
1600
00
Sales
1600
00
Sold to Customer on Account
15
Allowance for Doubtful Accounts
114
1000
00
Accounts Receivable – Pete Redding
1000
00
Wrote off Customer Account
Mar.
17
Accounts Receivable – Romo Co.
550
00
Allowance for Doubtful Accounts
114
550
00
To record collected portion
17
Cash
550
00
Accounts Receivable – Romo Co.
550
00
To record collected portion
Apr.
9
Cash
792
00
Allowance for Doubtful Accounts
114
3608
00
Accounts Receivable – Lane Davis
4400
00
Write off Customer Account
Jun.
15
Accounts Receivable – Mac‘s Garage
1100
00
Allowance for Doubtful Accounts
114
1100
00
To record collected amount
15
Cash
1100
00
Accounts Receivable – Mac‘s Garage
1100
00
To record collected amount
Oct.
18
Allowance for Doubtful Accounts
114
1320
00
Accounts Receivable – Jim‘s Diner
200
00
Accounts Receivable – Kailey Auto
420
00
Accounts Receivable – Ralph’s Hardware
700
00
Write off Customer Accounts
Nov.
12
Accounts Receivable – J.B. Rug
1700
00
Sales
1700
00
Sold to Customer on Account
PROBLEM 13A-4 (CONTINUED)
SHERRILL COMPANY
GENERAL JOURNAL
PAGE 2
Date
2015
Account Titles and Description
PR
Dr.
Cr.
Dec.
31
Bad Debts Expense
612
7
2
7
8
00
Allowance for Doubtful Accounts
114
7
2
7
8
00
Adjust for Bad Debts
31
Income Summary
312
7
2
7
8
00
Bad Debts Expense
612
7
2
7
8
00
Close Bad Debts Expense
(b) ALLOWANCE FOR DOUBTFUL ACCOUNTS
ACCOUNT NO. 114
Explanation
Post
Ref.
Debit
Balance
Date
2015
Credit
Debit
Credit
Jan.
1
Balance
√
4
4
0
0
00
15
GJ2
1
0
0
0
00
3
4
0
0
00
Mar.
17
GJ2
5
5
0
00
3
9
5
0
00
Apr.
9
GJ2
3
6
0
8
00
3
4
2
00
Jun.
15
GJ2
1
1
0
0
00
1
4
4
2
00
Oct.
18
GJ2
1
3
2
0
00
1
2
2
00
Dec.
31
Adjusting
GJ2
7
2
7
8
00
7
4
0
0
00
INCOME SUMMARY
ACCOUNT NO. 312
Date
2015
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Closing
GJ2
7
2
7
8
00
7
2
7
8
00
BAD DEBTS EXPENSE
ACCOUNT NO. 612
Date
2015
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Adjusting
GJ2
7
2
7
8
00
7
2
7
8
00
31
Closing
GJ2
7
2
7
8
00
0
00
PROBLEM 13A-4 (CONCLUDED)
(c)
SHERRILL COMPANY
PARTIAL BALANCE SHEET
SOLUTIONS TO SET B PROBLEMS
PROBLEM 13B-1
LAPAGLIA CO.
GENERAL JOURNAL
PAGE 3
Date
Account Titles and Description
PR
Dr.
Cr.
2015
Dec.
31
Bad Debts Expense
13
0
0
0
00
Allowance for Doubtful Accounts
13
0
0
0
00
Adjusting Entry
2016
Jan.
7
Allowance for Doubtful Accounts
5
0
0
00
Accounts Receivable—Gene Savage
5
0
0
00
Write off Customer Account
Mar.
5
Allowance for Doubtful Accounts
8
0
0
00
Accounts Receivable—Paul Jane
8
0
0
00
Write off Customer Account
Jul.
8
Accounts Receivable—Paul Jane
4
5
0
00
Allowance for Doubtful Accounts
4
5
0
00
Restore Customer Account
8
Cash
4
5
0
00
Accounts Receivable—Paul Jane
4
5
0
00
Collected from customer
Aug.
19
Allowance for Doubtful Accounts
1
5
0
0
00
Accounts Receivable—Bob Shea
1
5
0
0
00
Write off Customer Account
24
Allowance for Doubtful Accounts
7
0
0
00
Accounts Receivable—Jill Norton
7
0
0
00
Write off Customer Account
Nov.
19
Accounts Receivable—Bob Shea
3
0
0
00
Allowance for Doubtful Accounts
3
0
0
00
Restore Customer Account
19
Cash
3
0
0
00
Accounts Receivable—Bob Shea
3
0
0
00
Collected from Customer
PROBLEM 13B-2
Happy Co.
December 31, 2015
Amount
Estimated Percent Considered to be Bad
Debts Expense
Estimated Amount Needed
in Allowance for Doubtful
Accounts
Not yet due
$ 150,000
3%
$ 4,500
0-60
10,000
9%
900
61–180
9,000
18%
1,620
Over 6 months
4,000
36%
1,440
$ 173,000
$ 8,460
HAPPY CO.
GENERAL JOURNAL
PROBLEM 13B–3
T.J. RADAR
GENERAL JOURNAL
PAGE 4
Date
Account Titles and Description
PR
Dr.
Cr.
2015
Mar.
13
Bad Debts Expense
1
6
0
0
00
Accounts Receivable—S. Rosenberg
1
6
0
0
00
Write off Customer Account
Apr.
14
Bad Debts Expense
7
0
0
00
Accounts Receivable—P. Soulard
7
0
0
00
Write off Customer Account
2016
Nov.
8
Accounts Receivable—P. Soulard
7
0
0
00
Bad Debts Recovered
7
0
0
00
Record recovered portion
8
Cash
7
0
0
00
Accounts Receivable—P. Soulard
7
0
0
00
Record customer payment
Dec.
7
Bad Debts Expense
2
9
5
00
Accounts Receivable—J. Milstead
2
9
5
00
Write off Customer Account
Dec.
12
Bad Debts Expense
3
7
5
00
Accounts Receivable—D. Luby
3
7
5
00
Write off Customer Account
PROBLEM 13B-4
(a)
SEAY COMPANY
GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
2015
Jan.
9
Accounts Receivable—Roger’s Supply
1
4
0
0
00
Sales
1
4
0
0
00
Sold to Customer on Account
15
Allowance for Doubtful Accounts
114
6
0
0
00
Accounts Receivable—Pete Reineke
6
0
0
00
Wrote off Customer Account
Mar.
17
Accounts Receivable—Romero Co.
3
5
0
00
Allowance for Doubtful Accounts
114
3
5
0
00
To restore collected portion
17
Cash
3
5
0
00
Accounts Receivable—Romero Co.
3
5
0
00
To record collected portion
Apr.
9
Cash
8
0
0
00
Allowance for Doubtful Accounts
114
3
2
0
0
00
Accounts Receivable—Lane DiFelice
4
0
0
0
00
Write off Customer Account
Jun.
15
Accounts Receivable—Malcom‘s Garage
1
3
0
0
00
Allowance for Doubtful Accounts
114
1
3
0
0
00
To restore collected amount
15
Cash
1
3
0
0
00
Accounts Receivable—Malcom‘s Garage
1
3
0
0
00
To record collected amount
Oct.
18
Allowance for Doubtful Accounts
114
1
0
8
0
00
Accounts Receivable—Jen‘s Diner
1
6
0
00
Accounts Receivable—Kross Auto
4
2
0
00
Accounts Receivable—Red’s Hardware
5
0
0
00
Write off Customer Accounts
Nov.
12
Accounts Receivable—J.B. Rug
2
0
0
0
00
Sales
2
0
0
0
00
Sold to Customer on Account
PROBLEM 13B-4 (CONTINUED)
SEAY COMPANY GENERAL JOURNAL
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
2015
Dec.
31
Bad Debts Expense
612
6
6
3
0
00
Allowance for Doubtful Accounts
114
6
6
3
0
00
Adjust for Bad Debts
31
Income Summary
312
6
6
3
0
00
Bad Debts Expense
612
6
6
3
0
00
Close Bad Debts Expense
(b)
ALLOWANCE FOR DOUBTFUL ACCOUNTS
NO. 114
Date
2015
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Jan.
1
Balance
√
4
2
0
0
00
15
GJ2
6
0
0
00
3
6
0
0
00
Mar.
17
GJ2
3
5
0
00
3
9
5
0
00
Apr.
9
GJ2
3
2
0
0
00
7
5
0
00
June
15
GJ2
1
3
0
0
00
2
0
5
0
00
Oct.
18
GJ2
1
0
8
0
00
9
7
0
00
Dec.
31
Adjusting
GJ2
6
6
3
0
00
7
6
0
0
00
INCOME SUMMARY
ACCOUNT NO. 312
Date
2015
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Closing
GJ2
6
6
3
0
00
6
6
3
0
00
BAD DEBTS EXPENSE
ACCOUNT NO. 612
Date
2015
Explanation
Post
Ref.
Debit
Credit
Balance
Debit
Credit
Dec.
31
Adjusting
GJ2
6
6
3
0
00
6
6
3
0
00
31
Closing
GJ2
6
6
3
0
00
0
00
PROBLEM 13B-4 (CONCLUDED)
(c)
SEAY COMPANY
PARTIAL BALANCE SHEET
DECEMBER 31, 2015
Current Assets
Cash
$14
5
0
0
00
Accounts Receivable
$175
0
0
0
00
Less: Allowances for Doubtful Accounts
7
6
0
0
00
167
4
0
0
00
Merchandise Inventory
107
0
0
0
00
Office Supplies
2
0
9
0
00
Prepaid Rent
9
5
0
00
Total Current Assets
$291
9
4
0
00
FINANCIAL REPORT PROBLEM SOLUTION—2013 Kellogg’s Annual Report
Allowance for Doubtful Accounts 2013 $5 million
Allowance for Doubtful Accounts 2012 $6 million
CONTINUING PROBLEM SOLUTION: ON THE JOB—Smith Computer Center
General Journal
PAGE 2
Date
Account Titles and Description
PR
Dr.
Cr.
201X
Mar.
31
Bad Debt Expense
5140
1
6
0
0
00
Accounts Receivable—All Star Sports,
Inc.
1020
1
6
0
0
00