Entries for bad debt expense under the direct write-off and allowance methods

The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:

DateTransactionJune 8.Wrote off account of Kathy Quantel, $8,440.Aug. 14.Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.Oct. 16.Received the $8,440 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt.Dec. 31Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $4,600 Greg Gagne 3,600 Amber Kisko 7,150 Shannon Poole 2,975 Niki Spence 6,630Dec. 31.If necessary, journalize the year-end adjusting entry for uncollectible accounts.

If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Question Content Area

a. Journalize the transactions under the direct write-off method.

DateAccountDebitCredit b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:

c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method?

Entries for bad debt expense under the direct write-off and allowance methods. The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: lues 8 Wrote off account of Kathy Quantel, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. oct. is Received the $8,440 from Kathy Quantel, whose account had been written off o June 8 . Reinstated the account and recorded the cash receipt. ons. 3rote off the following accounts as uncollectible (record as one journal entry): Dec 3. If necessary, journalize the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by 4