On December 31, 2015, Central Freight reported an allowance for uncollectible ac

Question

On December 31, 2015, Central Freight reported an allowance for uncollectible accounts of $15,300. During 2016, Central wrote off $17,000 in accounts receivable. Included in the write-off was Roskoff Corp.'s account in the amount of $750. Roskoff subsequently paid this balance. At December 31, 2016, an analysis of the accounts receivable aging schedule indicated the need for an allowance for uncollectible account of $14,900.

Prepare all implied journal entries relative to bad debt expense and the allowance for the uncollectible accounts.

Explanation / Answer

Dr Allowance for Uncollectible Accounts 17,000
Cr Accounts Receivable 17,000

Dr Accounts Receivable 750
Cr Allowance for Uncollectible Accounts 750

Dr Cash 750
Cr Accounts Receivable 750

Dr Bad Debt Expense 15,850
Cr Allowance for Uncollectible Accounts 15,850

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