At December 31, 2017, the trial balance of Swifty Corporation contained the following amounts before adjustment. Debit
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Question:
At December 31, 2017, the trial balance of Swifty Corporation contained the following amounts before adjustment.
Debit | Credit | |||
---|---|---|---|---|
Accounts Receivable | $184,000 | |||
Allowance for Doubtful Accounts | $ 1,100 | |||
Sales Revenue | 999,600 |
(a) | Prepare the adjusting entry at December 31, 2017, to record bad debt expense, assuming that the aging schedule indicates that $10,650 of accounts receivable will be uncollectible. | |
(b) | Repeat part (a), assuming that instead of a credit balance there is a $1,410 debit balance in Allowance for Doubtful Accounts. | |
(c) | During the next month, January 2018, a $2,180 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. | |
(d) | Repeat part (c), assuming that Swifty Corporation uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. |
Related Book For
Introduction to Accounting An Integrated Approach
ISBN: 978-0078136603
6th edition
Authors: Penne Ainsworth, Dan Deines
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