Accounting for Bad Debts The following information was abstracted from the trial

Question

Accounting for Bad Debts The following information was abstracted from the trial hlance of Company C on November 1. 2017: Accounts Receivable Allowance for Uncollectible Accounts Net accounts receivable $341,000 (13,900) $327.100 Instructions: Prepare the necessary journal entries to record each of the following events: November 5: The receivable from Company B, with a balance of $7.100, was judged to be uncollectible and written off a. Date Account Titles and Explanations Debits Credits November 8: Company C received $9,000 from Company D for an account receivable the was previously written off b. Date Account Titles and Explanations Debits Credits Based on an aging of account receivable, the bad debts expense for November was $17.050 c. Debits Credits Date

Explanation / Answer

Journal Entry Date Account titles & Explanations Debit Credit 5-Nov Allowance for uncollectible accounts 7,100 Accounts receivable 7,100 8-Nov Account receivable 9,000 allowance for uncollectible account 9,000 cash 9,000 Account receivable 9,000 30-Nov Bad debts expense 1,250 Allowance for uncollectible account 1,250 (17,050 - (13,900-7100+9000)

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