Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging...
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Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. +A 31-60 $94,000 4% 3760 Number of Days Outstanding 61-90 $39,000 5% 91-120 Over 120 $18,000 8% LA $ 1950 $ 1440 $10,000 11% +A $ 1100 Numb Total 0-30 31-60 Accounts receivable $521,000 $360,000 $94,000 % uncollectible Estimated bad debts LA 11850 +A 1% 3600 4% +A $ 3760 +A $ Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,400 debit. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. Helen.com uses the allowance method of accounting for bad debts. The company produced the following aging of the accounts receivable at year-end. +A 31-60 $94,000 4% 3760 Number of Days Outstanding 61-90 $39,000 5% 91-120 Over 120 $18,000 8% LA $ 1950 $ 1440 $10,000 11% +A $ 1100 Numb Total 0-30 31-60 Accounts receivable $521,000 $360,000 $94,000 % uncollectible Estimated bad debts LA 11850 +A 1% 3600 4% +A $ 3760 +A $ Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,400 debit. (List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Of the above accounts, $5,400 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account. (List debit entry before credit entry. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (d) The company collects $5,400 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entries necessary to (1) restore the account and (2) record the cash collection. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2.
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For the yearend adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable 1 Debit the Bad Debt Expense account for the total estimated bad debts Bad Debt Expense 11210 2 Credit the Allowance for Doubtful Accounts for the same amount Allowance for Doubtful Accounts 11210 For the journal entries necessary to 1 restore the account and 2 record the cash collection 1 To restore the specific account Debit the Allowance for Doubtful Accounts to reverse the previous writeoff Allowance for Doubtful Accounts 5400 Credit the Accounts Receivable to reinstate the account Accounts Receivable 5400 2 To record the cash collection Debit Cash for the amount collected Cash 5400 Credit Accounts Receivable to reduce the accounts receivable balance Accounts Receivable 5400 For the journal entry to write off the uncollectible account ... View the full answer
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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