..i AT&T; 14:28 uncc.instructure.com Assignments> Ch8 Post-Lecture Assignment Po
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..i AT&T; 14:28 uncc.instructure.com Assignments> Ch8 Post-Lecture Assignment Post-Lecture Assignment Exercise 8-6 1. On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,451, Blossom Company estimates that 11% of its accounts receivable balance of $78,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful ettAccounts. On May 11, 2017, Blossom Company determined that B. Jared's On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and when amount is entered. Do not indent manually account was uncollectible and wrote off $1,260. Stty June 12, 2017, (Credit account titles are automatically indentedExplanation / Answer
No. Date Account titles and Explanation Debit Credit 1. December 31, 2016 Bad Debt Expense 10,031 Allowance for Doubtful Accounts 10,031 Notes: [$1,451 + (11% x $78,000) ] 2. May 11, 2017 Allowance for Doubtful Accounts 1,260 Accounts Receivable– B. Jared's 1,260 3. June 12, 2017 Accounts Receivable– B. Jared's 1,260 Allowance for Doubtful Accounts 1,260 Cash 1,260 Accounts Receivable– B. Jared's 1,260 Working Notes: on December 31, 2016 , Allowance for Doubtful Accounts should be 11% of 78,000 = $8,580 But it have debit balance of $1451 , so it was credited with (1451 + 8580 =10,031 ] to get desired allowance of 11% of 78,000 Please feel free to ask if anything about above solution in comment section of the question.
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