The following selected transactions were taken from the records of Rustic Tables
ID: 2555691 • Letter: T
Question
The following selected transactions were taken from the records of Rustic Tables Company for the yeer ending December 31 June 8. Wrote off account of Kathy Quantel, 55,810. Received f4, 130 as partial payment on the 10,400 account of Rosalie Oakes, wrote off the remaining balance as uncollectible. Received the $5,810 from Kathy Quantel, which had been written off on June 8. Reinstated the account and recorded the cash receipt. Oct. 16. Dec. 31. Wrote off tha folloning accounts as uncollactible (record as one journal antry) Wade Dolan Grag Gagne Amber Kisko Shannon Poole Niki Spence $1.680 1,050 4.010 2,320 640 Dec. 31 If necessary, record the yeor-end adjusting entry for the uncollectble accounts The company propared the following aging schedule for its accounts receivable Estimated Percent of Aging Class (Number of Days Past Due) on December 31 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total racaivabla: 3 96 $279.000 105,o00 33,000 12,000 17,000 $446,000 25 50 80 Check My Work Previous Next All work saved Save and Exit Submit t for GradingExplanation / Answer
Case-A Journal Entry: Date Accounts title and explanations Debit $ Credit $ 8-Jun Bad debts expense Dr. 5810 Accounts receivable-Kathy Quantel 5810 14-Aug Cash Account Dr. 4130 Bad debts expense Dr. 6270 Accounts receivable-Rosalie Oakes 10400 16-Oct Accounts receivable-Kathy Quantal Dr. 5810 Bad debts expense 5810 16-Oct Cash Account 5810 Accounts receivable-Kathy Quantal 5810 31-Dec Bad debt expense Dr. 9700 Accounts receivable-Wade Dolan 1680 Accounts receivable-Greg galne 1050 Accounts receivable -Amber Kisko 4010 Accounts receivable-Shannon Poole 2320 Accounts receivable-Niki Spence 640 31-Dec No Adjusting entry required Note: Year end adjustmemnt: Age class AR balance Estimated % Allowance 0-30 279000 3% 8370 31-60 105000 7% 7350 61-90 33000 25% 8250 91-120 12000 50% 6000 More than 120 days 17000 80% 13600 446000 43570 Allowance required to be made: Allowance balance at the end required 43,570 Add: Bad debts expense (6270+9700) 15,970 Less: Beginning balance -17,430 Bad debts expense 42,110 Case-B Journal Entry: Date Accounts title and explanations Debit $ Credit $ 8-Jun Allowance for Uncollectible Accounts 5810 Accounts receivable-Kathy Quantel 5810 14-Aug Cash Account Dr. 4130 Allowance for Uncollectible Accounts Dr. 6270 Accounts receivable-Rosalie Oakes 10400 16-Oct Accounts receivable-Kathy Quantal Dr. 5810 Allowance for Uncollectible Accounts 5810 16-Oct Cash Account 5810 Accounts receivable-Kathy Quantal 5810 31-Dec Allowance for Uncollectible Account Dr. 9700 Accounts receivable-Wade Dolan 1680 Accounts receivable-Greg galne 1050 Accounts receivable -Amber Kisko 4010 Accounts receivable-Shannon Poole 2320 Accounts receivable-Niki Spence 640 31-Dec Bad debts expense Dr. 42110 Allowance for Uncollectible accounts 42110