help please At December 31, 2017, the trial balance of Darby Company contained t
ID: 2599667 • Letter: H
Question
help please
At December 31, 2017, the trial balance of Darby Company contained the following ameunts bafore adjustment Credit Accounts Receivable $400,000 Allowance for Doubeful Accounts s 1,400 904,000 Based on the intormation given, which methad of accounting for bad debts is Darty Company usng-the drect wrte-off method or the aliowance methos? (b) Prepare the adjusting entry at December 31, 2017, for bad debt expense under each of the folowing independent asoumptions. (1) An aging schedule indicates that $10,800 of accounts receivable will be uncollectible. (2) The oompany estimates that 1% of sales will be uncollectible. c) Repeat part (b) assuming that instead of a edit balance there is an $1,400 debit balance in Allowance for Doubtful Accounts. (d) During the next month, January 2018, à $3,500 account receivable is written off as unccllectible. Prepare the journsl entry to recard the write-eff (e) Repeat part (d) assuming that Darby uses the direct wrilte-off methed insteed of the allomance mathod in accounting for unco lectible acoounts recelvable (Credit account titles are automatically indented when amountentered. Do not indent manually.) Account Tities Debit (b) (1) Dec. 33 Palik 200-2017 2ohn WileySans les, u Rights Reserved. A Divson of Sens lin. 17Explanation / Answer
a Allowance method b 1 Bad Debt Expense 9400 =10800-1400 Allowance for Doubtful Accounts 9400 2 Bad Debt Expense 9040 =904000*1% Allowance for Doubtful Accounts 9040 c 1 Bad Debt Expense 12200 =10800+1400 Allowance for Doubtful Accounts 12200 2 Bad Debt Expense 9040 Allowance for Doubtful Accounts 9040 d Allowance for Doubtful Accounts 3500 Accounts Receivable 3500 e Bad Debt Expense 3500 Accounts Receivable 3500
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.