Exercise $8-13$ Aging analysis LO$3$ 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 $$50,500,$ the

bad debt expense account had a balance of $$0,$ and the allowance for doubtful accounts had a credit balance of $$5,050.$ Journalize

the remaining journal entries for the $2023$ year.

Dec. $2$ Sold tents for $$5,100$ on account with a cost of $$2,550.$

Determined that the total accounts of Rocky Co$.$ with an accounts receivable balance of $$1,250$ and

$20\}\backslash$mathrm$\{$ Grouse Co$.$ with an accounts receivable balance of $$2,550$ were uncollectible and needed to be

written off.

$23\}\backslash$mathrm$\{$ Unexpectedly received payment from Grouse Co$.$ for $$2,550.$

$31$ Estimated that $10\%$ of accounts receivable recorded 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.

Journal entry worksheet

Record the sales. c$.$ Show how accounts receivable would appear on the December $31,2024,$ balance sheet.

Winfrey Designs had an unadjusted credit balance in its Allowance for Doubtful Accounts at December $31,2023,$ of $$2,450.$

Required:

a$.$ Prepare the adjusting entry assuming that Winfrey estimates uncollectible accounts based on an aging analysis as follows.

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