SOLUTION PROBLEM 8-3A

a)

Date Account Title Debit Credit

Dec. 31 Bad debt expense 32.730
Allowance for Doubtful Accounts
($41.730 - $9.000) 32.730

(a) & (b)

Bad Debt Expense

Date Explanation Ref. Debit Credit Balance

2014
Dec. 31 Adjusting 32.730 32.730

Allowance for Doubtful Accounts

Date Explanation Ref. Debit Credit Balance

2014
Dec. 31 Balance 9.000
31 Adjusting 32.730 41.730
2015
Mar. 31 1.000 40.730
May 31 1.000 41.730

b)

Date Account Title Debit Credit

2015
Mar. 31 Allowance for Doubtful Accounts 1.000
Accounts Receivable 1.000

May 31 Accounts Receivable 1.000

Allowance for Doubtful Accounts 1.000

31 Cash 1.000
Accounts Receivable 1.000

c)

Date Account Title Debit Credit

2015
Dec. 31 Bad debt Expense 32.400
Allowance for Doubtful Accounts
($31.600 + $800) 32.400