JD Industries wrote off the following accounts receivable as uncollectible
JD Industries wrote off the following accounts receivable as uncollectible for the year ended December 31, 2015:
Customer Amount
Eva French .......... $ 1,500
Lance Landau ......... 11,200
Marcie Moffet ......... 3,800
Jose Rennie .......... 3,500
Total ............$20,000
The company prepared the following aging schedule for its accounts receivable on December 31, 2015:
a. Journalize the write-offs and the year-end adjusting entry for 2015 under the allowance method, assuming that the allowance account had a beginning balance of $17,000 on January 1, 2015, and the company uses the aging of receivables method.
b. Determine the net realizable value of accounts receivable as at December 31, 2015.
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