The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2019: Number of Days Unpaid Total Accounts Receivable Historical % Uncollectible Not yet due $ 127,400 3 % 1-30 days past due 90,100 13 % 31-60 days past due 54,500 19 % Over 60 days past due 32,700 33 % Required: The unadjusted balance of the Allowance for Doubtful Accounts of Johnston Supplies, Inc. is a credit balance in the amount of $29,217 on July 31, 2019. Prepare the required adjusting entry to record Bad Debt Expense for the year. Johnston Supplies, Inc. writes off $3,171 of uncollectible accounts on August 15, 2019. Prepare the required adjusting entry to record the write-off. Use a T-account to determine the account balance in the Allowance for Doubtful Accounts on August 15, 2019.

bad debt expense 7,464 debit

      allowance for doubtful accounts   7,464 credit

--to record year-end adjustment for bad debt expense--

allowance for doubtful accounts 3,171 debit

                   accounts receivables      3,171 credit

--to record write-off of a custoemr account--

Explanation:

We multiply each balance by their expected uncollectible amount:

Date   // Amount  // Expected    //  uncollectible

not due1274000.03         3,822

up to 30901000.13                  11,713

up to 60545000.19                 10,355

above 61  327000.33          10,791

                 Total        36,681

Allowance balance 29,217

Difference 36,681 - 29,217 = 7,464

The write-off will decrease both, account recievable and the allowance

Allowance for doubtful accounts

Debit      Credit

            36,681

3,171

Balance 33,510

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number