as 7-5 Gomez Corp. uses the allowance method to account for uncollectibles. On J
ID: 2449543 • Letter: A
Question
as 7-5 Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an Allowance method for $800 account of a customer, C. Green. On March 9, it receives a $300 payment from Green bad debts 1. Prepare the journal entry or entries for January 31. 2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green. P2 aS 7-6 Percent of accounts receivable method P2 Warner Company's year-end unadjusted trial balance shows accounts receivable of $99,000, allowance for doubtful accounts of $600 (credit), and sales of S280,000. Uncollectibles are estimated to be 1.5% of ac- counts receivable. 1. Prepare the December 31 year-end adjusting entry for uncollectibles. 2. What amount would have been used in the year-end adjusting entry if the allowance account had a year-end unadjusted debit balance of $300?Explanation / Answer
7.5 )
7.6)
7.7 ) uncollectibles estimated = 280000 * .5% = $ 1400
Bad debt expense Debit 1400
Allowance for doubtful account credit 1400
7.8) 1- Maturity date = aug 2 + 90 days
= 31 october 2015
2) Note receivable debit 6000
Accounts receivable credit 6000
[being note received for balance due]
Date Title Debit credit jan 31 Allowance for doubtful debts 800 Accounts receivable 800 [being receivable write off] mar 9 Accounts receivable 300 Allowance for doubtful debts 300 [being amount write off earlier again made due] march9 cash 300 Accounts receivable 300 [cash received from receivables]Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.