The following transactions were completed by clarck. Management Company during t

Question

The following transactions were completed by clarck. Management Company during the fiscal year ended Dec. 31:

July 5. Received 70% of the $21,000 balance owed by dockins Co., a bankrupt business, and wrote off the remainder as uncollectible.

Sept. 21. Reinstated the account of Bart Tiffany, which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,875 cash in full payment of tiffany's account.

Oct. 19. Wrote off the $6,275 balance owed by Ski time Co. whuch has no assets.

Dec. 31. Wrotte off the following accounts as uncollectible (compound entry): Maxie Co., $2,150; Kommers Co., $3,600; Helena Distributors, $ 5,500; Ed Ballantyne, $1,750

31. Based on Analysis of the $815,240 of account receivable, it was estimated that $16,750 will be uncollectible. Journalize and adjust entry.

Explanation / Answer

July 5. Received 70% of the $21,000 balance owed by dockins Co., a bankrupt business, and wrote off the remainder as uncollectible. Cash $14,700 Bad debts expense $ 6,300 Accounts receivable (Dockins Co.) $21,000 Sept. 21. Reinstated the account of Bart Tiffany, which had been written off in the preceding year as uncollectible. Journalized the receipt of $4,875 cash in full payment of tiffany's account. Accounts receivable $4,875 Bad debts expense $4,875 Cash $4,875 Accounts receivable $4,875 Oct. 19. Wrote off the $6,275 balance owed by Ski time Co. whuch has no assets. Bad debts $6,275 Accounts receivable $6,275 Dec. 31. Wrotte off the following accounts as uncollectible (compound entry): Maxie Co., $2,150; Kommers Co., $3,600; Helena Distributors, $ 5,500; Ed Ballantyne, $1,750 Bad debts $13,000 Accounts receivable (Naxie Co.) $2,150 Accounts receivable (Kommers Co.) $3,600 Accounts receivable (Heena Distributor) $5,500 Accounts receivable (Ed Ballantyne) $1,750 31. Based on Analysis of the $815,240 of account receivable, it was estimated that $16,750 will be uncollectible. Journalize and adjust entry. Bad debts expense $16,750 Allowance for uncollectible accounts $16,750

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