Extreme Gamer Software uses the direct charge-off method to account for uncollectible accounts expenses as they occur.

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Extreme Gamer Software uses the direct charge-off method to account for uncollectible accounts expenses as they occur. Selected transactions for 2016 and 2017 follow. The accounts involved are Accounts Receivable, Notes Receivable, and Uncollectible Accounts Expense. Record each transaction in general journal form.
Date Transactions
2016
March 15 Tony Salazar, a credit customer, dies owing the firm $3,000. The account is written off.
April 22 Jared Green, a credit customer who owes the firm $2,000, declares bankruptcy. The amount is considered uncollectible and written off.
June 16 The executor of the estate of Tony Salazar sends the firm $800 in partial settlement of the account written off on March 15. The cash obtained has already been recorded.
July 13 The bankruptcy court sends the firm $1,200 in settlement of the account receivable of Jared Green which was written off on April 22. The cash obtained has already been recorded in the cash receipts journal.
Oct. 8 The account owed by a customer, May Homes, in the amount of $1,350 is determined worthless and is written off.
2017
Feb. 12 Jared Green pays the remainder of the account that had previously been written off. (See transactions of April 22 and July 13). The cash obtained has already been recorded in the cash receipts journal.
Analyze: When the worksheet is prepared at the end of 2016, what balance should be listed for Uncollectible Accounts Expense? Assume that the transactions given are the only transactions that affected the account?
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Related Book For  book-img-for-question

College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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