$4$

Exercise $8-8$ Receivables, allowance for doubtful accounts, write$-$off, and subsequent recovery LO$1,2,3$

Outdoor Equipment $($OE$)$ sells camping equipment. On December $1,$ the accounts receivable account had a balance of $$50,600,$ the

bad debt expense account had a balance of $$0,$ and the allowance for doubtful accounts had a credit balance of $$5,060.$ Journalize

the remaining journal entries for the $2023$ year.

Dec. $2$ Sold tents for $$5,120$ on account with a cost of $$2,560.$

Determined that the total accounts of Rocky Co$.$ with an accounts receivable balance of $$1,260$ and

$20$ Grouse Co$.$ with an accounts receivable balance of $$2,560$ were uncollectible and needed to be

written off.

$23$ Unexpectedly received payment from Grouse Co$.$ for $$2,560.$

$31$ Estimated that $10\%$ of accounts receivable recordd to date would be uncollectible.

Required:

Prepare journal entries to record the transactions. Note: Write$-$off of uncollectible accounts for Rocky Co$.$ and Grouse Co$.$ should be

posted separately.