Journal entry worksheet

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$2$

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$6$

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$....$

$13$

The company estimates future uncollectible accounts. The company determines $$5,900$ of accounts receivable on January $31$ are past due, and $20\%$ of these accounts are estimated to be uncollectible. The remaining accounts receivable on January $31$ are not past due, and $5\%$ of these accounts

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$January $31,2024,$Bad Debt Expense,,$],[,$Allowance for Uncollectible Accounts,,$],[,,,],[,,,],[,,,],[,,,]]$

On January $1,2024,$ the general ledger of $3$D Family Fireworks includes the following account balances:

Accounts Debit Credit

Cash $$25,700$

Accounts Receivable $14,500$

Allowance for Uncollectible Accounts $$1,700$

Supplies $3,400$

Notes Receivable $(6\%,$ due in $2$ years$)29,000$

Land $77,900$

Accounts Payable $10,500$

Common Stock $105,000$

Retained Earnings $33,300$

Totals $$150,500$ $$150,500$

During January $2024,$ the following transactions occur:

January $2$ Provide services to customers for cash, $$44,100.$

January $6$ Provide services to customers on account, $$81,400.$

January $15$ Write off accounts receivable as uncollectible, $$2,200.($Assume the company uses the allowance method$)$

January $20$ Pay cash for salaries, $$32,300.$

January $22$ Receive cash on accounts receivable, $$79,000.$

January $25$ Pay cash on accounts payable, $$6,400.$

January $30$ Pay cash for utilities during January, $$14,600.$

The following information is available on January $31,2024.$

a$.$ The company estimates future uncollectible accounts. The company determines $$5,900$ of accounts receivable on January $31$ are past due, and $20\%$ of these accounts are estimated to be uncollectible. The remaining accounts receivable on January $31$ are not past due, and $5\%$ of these accounts are estimated to be uncollectible. $($Hint: Use the January $31$ accounts receivable balance calculated in the general ledger to split total accounts receivable into the $$5,900$ past due and the remaining amount not past due.$)$

b$.$ Supplies at the end of January total $$700.$ All other supplies have been used.

c$.$ Accrued interest revenue on notes receivable for January. Interest is expected to be received each December $31.$

d$.$ Unpaid salaries at the end of January are $$34,400.$