Exercise 8-6 1, on December 31, 2016, when its Allowance for Doubtful Accounts h

Question

Exercise 8-6 1, on December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,487, waterway Industries estimates that 10% of its accounts receivable balance of $103,800 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2017, waterway Industries determined that B. Jared's account was uncollectible and wrote off $1,260. 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.) No. Account Titles and Explanation Debit Credit 3. (To reinstate account previously written off) Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

The following is the required journal entry:

Bad debt expense a/c

[($103,800)*10% + $1,487]

no. Date Account titles Debit credit 1 Dec 31 2016

Bad debt expense a/c

[($103,800)*10% + $1,487]

$11,867 ..............To Allowance for doubtful accounts a/c $11,867 (being bad debt expense recorded) 2. may 11 2017 Allowance for doubtful accounts a/c $$1,260 .. .............To Accounts receivable -B.Jared $1,260 (being writing off uncollectible accounts receivable) 3. June 12 2017 Accounts receivable -B.Jared a/c $1,260 ..............To Allowance for doubtful accounts a/c $1,260 (reinstate account previously written off) june 21,2017 Cash a/c $1,260 ..........To accounts receivable - B. jared a/c $1,260 (being cash received from receivables )

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.