4) Sunrays, I unexpectedly repaid his account in full. The company uses the dire

Question

4) Sunrays, I unexpectedly repaid his account in full. The company uses the direct write-off method to account for uncollectible receivables. Journalize the entries required for Sunrays, Inc. on January 21, 2017.aSpts) nc. wrote off the account of one of its customers, Brad Doe, in 2016 for $500. On January 21, 2017, Brad 5) On January 1, 2017, Everlight Corp. has the following account balances: Accounts Receivable 20,000 Allowance for Bad Debts 1,200 Bad Debts Expense During the year, Everlight has $155,000 of credit sales, collections of credit sales of $143,000, and write-offs of $3,300. It records bad debts expense at the end of the year using the aging-of-receivables method. At the end of the year, the aging analysis shows that $1,700 is the estimate of uncollectible accounts Before the year-end entry to adjust the bad debts expense is made, the balance in the Allowance for Bad Debts expense is a. .(10pts) b. Prepare the journal entry to record the bad debts expense on December 31, 2017.(20pts) 6) The Allowance for Bad Debts account has a credit balance of $2,000 The company's management estimates that 2% of net credit sales will be uncollectible for the year 2017, N for the year were $250,000. Prepare the journal entry to record the bad debts before the adjusting entry for bad debts expense. et credit sales expense on December 31, 2017.(10pts)

Explanation / Answer

Journal Entry sunrays Date Accounting titles & Explanations Debit Credit 20-Jan accounts receivable 500 bad debts expense 500 Cash 500 Accounts receivable 500 5) T-Account Allowance for bad debts 1,200 500 1,700 a) before year end balance is $1,200 b) Journal entry to record bad debts expense Accounting titles & Explanations Debit Credit Bad debts expense 500 Allowance for bad debts 500 (1700-1200=500) 6) Estimated bad debts =250,000*2% 5000 Accounting titles & Explanations Debit Credit Bad debts expense 5,000 Allowance for bad debts 5,000

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