Exercise 8-6 On December 31, 2013, Russell Co. estimated that 3% of its net sale
ID: 2405958 • Letter: E
Question
Exercise 8-6 On December 31, 2013, Russell Co. estimated that 3% of its net sales of $408,600 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2014, Russell Co. determined that the B. Vetter account was uncollectible and wrote off $2,043. On June 12, 2014, Vetter paid the amount previously written off. Prepare the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) DateAccount Titles and Explanation Debit Credit Dec. 31, 2013 May 11, 2014 June 12, 2014 (To reinstate the account written off) (To record the receipt on account)Explanation / Answer
Answers
Date
Accounts title
Debit
Credit
Dec 31, 2013
Bad Debt Expenses
$ 12,258.00
Allowance for Doubtful Accounts
$ 12,258.00
(uncollectible expense estimated and recorded)
May 11, 2014
Allowance for Doubtful Accounts
$ 2,043.00
Accounts receivables
$ 2,043.00
(account written off)
June 12, 2014
Accounts receivables
$ 2,043.00
Allowance for Doubtful Accounts
$ 2,043.00
(account reinstated - reverse entry of above]
June 12, 2014
Cash
$ 2,043.00
Accounts receivables
$ 2,043.00
(Cash received from account previously written off)
Date
Accounts title
Debit
Credit
Dec 31, 2013
Bad Debt Expenses
$ 12,258.00
Allowance for Doubtful Accounts
$ 12,258.00
(uncollectible expense estimated and recorded)
May 11, 2014
Allowance for Doubtful Accounts
$ 2,043.00
Accounts receivables
$ 2,043.00
(account written off)
June 12, 2014
Accounts receivables
$ 2,043.00
Allowance for Doubtful Accounts
$ 2,043.00
(account reinstated - reverse entry of above]
June 12, 2014
Cash
$ 2,043.00
Accounts receivables
$ 2,043.00
(Cash received from account previously written off)
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