PROBLEM VI (16%) Make the necessary entries for the following dates for Stem Com

Question

PROBLEM VI (16%) Make the necessary entries for the following dates for Stem Company May 5, 2016 Wrote o ff the account of R. Quivers, a bankrupt, 5910 Aug. 15, 2016 Received a check from J. Martling for $725 im full payment of his ovendu Dec. 31, 2016 Dec. 31, 2016 The account. The account was written off in 1999 Stern's sales in 2016 were $900,000. Stern's uncollectible accounts expense was based on 5% of sales. Allowance for Doubsfial Accounts showed a debit balance of $2.000 It is estimated that $45,000 of receivables will be uncollectible based on an analysis.

Explanation / Answer

May-05 Allowance for doubtful accounts 910         Accounts Receivable-R Quivers 910 Aug-15 Accounts Receivable-J Martling 725      Allowance for doubtful accounts 725 Cash 725      Accounts Receivable-J Martling 725 Dec-31 Bad debts expense 45000 =900000*5%      Allowance for doubtful accounts 45000 Dec-31 Bad debts expense 47000 =45000+2000      Allowance for doubtful accounts 47000

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