Q 5. At 31 July 2018, the trial balance of Odom Ltd has the following amounts before
Question:
Q 5. At 31 July 2018, the trial balance of Odom Ltd has the following amounts before adjustment:
Debits Credits
Accounts Receivable $350,000
Allowance for Doubtful Debts $16,625
Sales $715,250
Required:
1. Prepare the adjusting entry at 31 July 2018 for bad debts expense assuming that the aging schedule indicates that $18,025 of accounts receivable will be uncollectable.
2. Repeat (1) assuming that instead of a credit balance, there is a $6,200 debit balance in the Allowance for Doubtful Debts before the adjusting entry.
3. A $6,060 account receivable was written off as uncollectable on 30thNovember 2018. Prepare the journal entry to record the write-off.
4. Repeat (3) assuming that Odom Ltd uses the direct write-off method instead of the allowance method in accounting for bad debts.
Expert Answer:
Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
