for a budiness that uses the allowance method of accounting for uncollectible re
ID: 2557688 • Letter: F
Question
for a budiness that uses the allowance method of accounting for uncollectible recivables: Required:(a) Journalize the entries to record the following: (1) Journalize the entries to record the following: (1) Record the adjusting entry at December31, the end of the first fiscal year, to record the bad dept expense.The accounts receivable account has a balance of $800,000, and th contra asset account before adjustment had a debt balance $600. Analysis of the receivables indicate in collectible receivables of $18,000. (2) In march of the next year , the $350 owed by Frank Co. on account is written off as uncollactible. (3). In november of the next year$200 of the Fronk Co. account is reinstated and payment of that amount is received. (4). In december of the next year, $400 is received on the $600 owed by Dodger Co. and remainder is written off as uncollectible. (b) Redo the entries in step (2),(3), and (4) assuming the company uses the direct write off method.for a budiness that uses the allowance method of accounting for uncollectible recivables: Required:(a) Journalize the entries to record the following: (1) Journalize the entries to record the following: (1) Record the adjusting entry at December31, the end of the first fiscal year, to record the bad dept expense.The accounts receivable account has a balance of $800,000, and th contra asset account before adjustment had a debt balance $600. Analysis of the receivables indicate in collectible receivables of $18,000. (2) In march of the next year , the $350 owed by Frank Co. on account is written off as uncollactible. (3). In november of the next year$200 of the Fronk Co. account is reinstated and payment of that amount is received. (4). In december of the next year, $400 is received on the $600 owed by Dodger Co. and remainder is written off as uncollectible. (b) Redo the entries in step (2),(3), and (4) assuming the company uses the direct write off method.
Explanation / Answer
a) Journal Entries using allowance method :
b) Journal Entries with direct written off method :
Date Accounts Titles Debit $ Credit $ 2 Allowance for Uncollectible accounts 350 Accounts Receivables 350 (Frank co,'s accounts receivable written off) 3 Accounts Receivables 200 Allowance for Uncollectible accounts 200 (the account of Fronk Co. reinstated) Cash 200 Accounts Receivables 200 (accounts receivables received ) 4 Cash 400 Allowance for Uncollectible accounts 200 Accounts Receivables 600 (being in dec. dodger Co. account is partially received and remaining written off)Related Questions
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