Prepare the journal entries on December 31, 2013, May 11, 2014, and June 12, 201
ID: 2480923 • Letter: P
Question
Prepare the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
(To reinstate account previously written off)
1. On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $2,300, Hunt Co. estimates that 9% of its accounts receivable balance of $89,100 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. 2. On May 11, 2014, Hunt Co. determined that J. Byrd’s account was uncollectible and wrote off $1,200. 3. On June 12, 2014, Byrd paid the amount previously written off.Explanation / Answer
the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014.
Date Description Debit $ Credit $ 31-Dec-13 Dr Bad Debt Expense 10319 Cr Allowance for Doubtful Accounts 10319 (Bad debt expense= $89100 x 9% + $2300 = $10319 2013May 11, 2014 Dr Allowance for Doubtful Accounts 1200 Cr Accounts Receivable 1200 (Being J. Byrd’s account was
uncollectible and wrote off $1,200.) June 12, 2014 Dr Accounts Receivable 1200 Cr Allowance for Doubtful Accounts 1200 Dr Cash 1200 Cr Accounts Receivable 1200 (Being Byrd paid the amount
previously written off)