Show Me How Entries Related to Uncolectible Accounts The folowing transactions w
ID: 2519723 • Letter: S
Question
Show Me How Entries Related to Uncolectible Accounts The folowing transactions were completed by The Wild rout Gallery during the current fiscal year ended December 31 Jan. 19. Renstated the acount of Alee arey, which had been written or n the preceeg year as noledek hnelued-receipt of $2,540 cash in full payment of Ariene's account Ape. 3. Wrobe off the $14,550 balance owed by Premier GS Co, which is bankrupt. uy 16. eved 25% ofthe S26,100 balance owed by Hayden Cov , bankrupt business, and wrote off the remainder as ueelledble. Nov. 23. cash in full payment Dec. 31 Wrote off the tollowing accounts as oncollectible (one entry): Cavey Co,$10,945; Fogle Co, $3,250; Lake Puniture, $8,3ss Reinstated the account of Harry Cart which had been writen off two years earlier as uncollectble. Recorded the receipt or s4,140 Melinda Shryer $2,360 Based on an analysis of the $1,288,000 of accounts receivable, it was estimated that $56,000 will be uncollectible.Jourmalized Dec. 3 the adjusting entery . Record the Sanuary 1 credit balance of $53,300 in a T account presented below in requirement 2b for Alowance for Doubtful Accounts 2.a.eurnakze the transations. Por a compound transaction, he $1,2,000 balance in accounts an amount box does not require an entry, leave it bank. Note: For the December 31 a usting entre assume recelvable refiects the adustments made during the year an19-nstate 0Explanation / Answer
DATE 19-Jan CASH 2540 TO PROFIL & LOSS ACCOUNT 2540 3-Apr BAD DEBTS 14550 TO PREMIER & CO 14550 16-Jul CASH 6525 BAD DEBTS 19575 TO HAYDEN & CO 26100 23-Nov CASH 4140 TO PROFIL & LOSS ACCOUNT 4140 31-Dec BAD DEBTS 24910 TO CAVEY & CO 10945 TO FOGLE & CO 3250 LAKE FURNITURE 8355 SHRYER 2360 31-Dec PROIFT & LOSS ACCOUNT 56000 TO PROVISION FOR BAD DEBTS 56000