1, on December 31, 2016, when its Allowance for Doubtful Accounts had a debit ba
ID: 2548901 • Letter: 1
Question
1, on December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,432, Sunland Company estimates that 9% of its accounts receivable balance of $105,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts 2. On May 11, 2017, Sunland Company determined that B. Jared's account was uncollectible and wrote off $1,091 3. On June 12, 2017, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit No. Date Account Titles and Explanation May 11, 2017 2. December 31, 2016 (To reinstate account previously written off)Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Dec 31,2016 Bad debt expense (105900*9%+1432) 10963 Allowance for doubtful accounts 10963 May 11,2017 Allowance for doubtful accounts 1091 Account receivable 1091 June 12,2017 Account receivable 1091 Allowance for doubtful accounts 1091 (To reinstate account previously written off) Cash 1091 Account receivable 1091Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.