For a business that uses the allowance method of accounting for uncollectible receivables: Required 1. Journalize the
Question:
For a business that uses the allowance method of accounting for uncollectible receivables:
Required
1. Journalize the entries to record the following:
a. Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000.*
b. In March of the next year, the $350 owed by Fronk Co. on account is written off as uncollectible.*
c. In November of the next year, $200 of the Fronk Co. account is reinstated and payment of that amount is received.*
d. In December of the next year, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.*
2. Redo the entries in steps (2), (3), and (4) assuming the company uses the direct write-off method.*
| *Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1 JOURNAL
PAGE 1 JOURNAL
|
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis