Show Me How Entries for June 8. Wrote off account of Kathy Quantel, $6,760. Aug.
ID: 2515065 • Letter: S
Question
Show Me How Entries for June 8. Wrote off account of Kathy Quantel, $6,760. Aug. 14. Received $4,800 as partial payment on the $12,100 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $6,760 from Kathy Quantel, which had been wnitten off on June 8. Reinstated the account and recorded the cesh receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry) $1,960 Wade Dolan Greg Gagne Amber Kisko 1,220 Shannon Poole Niki Spence 2,700 740 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. The company prepared the following aging schedule for its accounts recelvable: Balance Estimated Percent of Aging Class (Number of Days Past Due) 0-30 days 31-60 days on December 31 2% $324,000 122,000 Assignment Score: 77.78%Explanation / Answer
Jouornal entries under Direct Write off: Date Accounts title and explanations Debit $ Credit $ 8-Jun Bad debts expense Dr. 6760 Accounts receivable-Kathy 6760 14-Aug Cash Aaccount Dr. 4800 Bad debts expense Dr. 7300 Accounts receivable-Roselle 12100 16-Oct Accounts receivable Dr.-Kathy 6760 Bad debts expensse 6760 Cash Account Dr. 6760 Accounts receivable -Kathy 6760 31-Dec Bad debts expense Dr. 11280 Accounts receivable-Wade 1960 Accounts reeivable-gagne 1220 Accounts receivable-Kisko 4660 Accounts receivable-Poole 2700 Accounts receivable-Spence 740 Journal entries Under Allowance: Date Accounts title and explanations Debit $ Credit $ 8-Jun Allowance for uncollectibles Accounts 6760 Accounts receivable-Kathy 6760 14-Aug Cash Aaccount Dr. 4800 Allowance for uncollectibles account Dr. 7300 Accounts receivable-Roselle 12100 16-Oct Accounts receivable Dr.-Kathy 6760 Allowance for Uncollectible accounts 6760 Cash Account Dr. 6760 Accounts receivable -Kathy 6760 31-Dec Allowance for Uncollectible account Dr. 11280 Accounts receivable-Wade 1960 Accounts reeivable-gagne 1220 Accounts receivable-Kisko 4660 Accounts receivable-Poole 2700 Accounts receivable-Spence 740 31-Dec Bad debts expense Account Dr. 49720 Alowance for uncollectibles account 49720 Note: Allowance balance required at the end: Age Group AR balance Estimated% Allowance required 0-30 days 324000 2% 6480 31-60 days 122000 7% 8540 61-90 days 39000 30% 11700 91-120 days 14000 55% 7700 More than 120 days 20000 85% 17000 TOTAL 519000 51420 Beginning balnce of Allowancce 20280 Less: write off (7300+11280) 18580 Remaining Balance in Allowwance 1700 Required balance in Allowance 51420 Bad ddebts expense 49720 Req B: Bad debts expense under Direct method (7300+11280) 18580 Bad debts expense under Allowance 51420 Net income higher under Direct method by 32840