Jagan Company uses the allowance method to account for uncollectible receivables. On June 2, Jagan wrote off
Question:
Jagan Company uses the allowance method to account for uncollectible receivables. On June 2, Jagan wrote off a $15,000naccount receivable from customer J. Malana. On July 12, Jagan unexpectedly received full payment from Malana on the previously written off account. Jagan records an adjusting entry for bad debts expense of $820 on July 31.
9. | Journalize Jagan's write-off of the uncollectible receivable. | |
10. | Journalize Jagan's collection of the previously written off receivable. | |
11. | Journalize Jagan's adjustment for bad debts expense. |
9. Journalize Jagan's write-off of the uncollectible receivable. (Record debits first, then, credits. Select the explanation on the last line of the journal entry table.)
Date | Accounts and Explanation | Debit | Credit |
---|---|---|---|
Jun. 2 | |||
10. Now journalize Jagan's collection of the previously written off receivable. (Record the transaction in two journal entries.)
Start by making the entry to adjust the applicable expense account related to the collection of the previously written off receivable. Do not record the Cash portion of the entry yet. We will do that in the following step.
Date | Accounts and Explanation | Debit | Credit |
---|---|---|---|
Jul. 12 | |||
Now record the cash collection of the receivable previously written off.
Date | Accounts and Explanation | Debit | Credit |
---|---|---|---|
Jul. 12 | |||
11. Finally, journalize Jagan's
adjustment for bad debts expense.
Date | Accounts and Explanation | Debit | Credit |
---|---|---|---|
Jul. 31 | |||
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson