Part 3: Accounting for Bad Debts (25 Points) The following information was abstr

Question

Part 3: Accounting for Bad Debts (25 Points) The following information was abstracted from the trial balance of Dunstan Corporation on November 1, 2017: Accounts Receivable Allowance for Uncollectible Accounts Net accounts receivable $868,000 12.900) 855100 Instructions: Prepare the necessary journal entries to record each of the following events: November 4: The receivable from Bancroft Company, with a balance of $4,200, was judged to be uncollectible and written off. a. Credits Date Account Titles and Explanations November 6: Dunstan Corporation received $6,900 from Barclay Company for an account receivable the was previously written off. b. Date Account Titles and Explanations Debits Credits c. Based on an aging of account receivable, the bad debts expense for November was $69.440 Date Account Titles and ExplanationsDebits Credits Test 3 lg

Explanation / Answer

Date Account Debit credit Nov4 Allowance for uncollectible account 4200 Accounts receivable 4200 [Being account deemed uncollectible writtenoff] Nov 6 Accounts receivable 6900 Allowance for uncollectible account 6900 [being account writtenoff reinstated] cash 6900 Accounts receivable 6900 [cash collected] 30 Nov Bad debt expense 69440 Allowance for uncollectible account 69440 [being bad debt expense recorded]

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