378 cons 12, Hall remitted $200 and indicated On February 23, 2012, the account

Question

378 cons 12, Hall remitted $200 and indicated On February 23, 2012, the account of Dan Hall in the am the balance due as soon as possible. By December 31 0 Prepare journal entries to record all of these transactions and uncollectible accounts at 8% of outstanding receivables rat lectible and written off. On August 12, 2012, Hall remitted unt of $300 2, no further ta to pay Hall and no further remittance was expected adjusting Requiredb. Give the entry necessary as of December 31, 2011, if Fargo Com than at 1% of

Explanation / Answer

Answer to question (a)

Journal Entry

Entry 1: For written off.

Baddebt Debit $300

Receivable Credit $300

Entry 2 : For reversal of amount written off to the extent amount received

Receivable Debit $200

Baddebt Credit $200

Entry 3: Collection of $200

Cash Debit $200

Receivable Credit $200

Note:

Amount which Dan Hall communicated, that he will pay the balance amount as soon as possible is not certain, hence we sould not reverse badebt of remaining amount. On actual realiation same treatment as done above need to be carried out for remaining amount.

Answer to question (b)

Receivables and sales figure are missing, accordingly this question can't be answer.

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