Part 3: Accounting for Bad Debts (25 Points) The following information was abstr
ID: 2568060 • Letter: P
Question
Part 3: Accounting for Bad Debts (25 Points) The following information was abstracted from the trial balance of Dunstan Corporation on November 1, 2017: Accounts Receivable Allowance for Uncollectible Accounts Net accounts receivable $868,000 (12.900) $855.100 Instructions: Prepare the necessary journal entries to record each of the following events a. November 4: The receivable from Bancroft Company, with a balance of $4,200, was judged to be uncollectible and written off. Date Account Titles and Explanations Debits Credits b. November 6: Dunstan Corporation received $6,900 from Barclay Company for an account receivable the was previously written off. Debits Credits Date Account Titles and Explanations Based on an aging of account receivable, the bad debts expense for November was $69,440 c. Date Debits Credits Test 3, V2Explanation / Answer
Date Account Titles and Explanation Debit Credit a. Nov. 4 Allowance for Uncollectible Accounts 4200 Accounts Receivable-Bancroft Company 4200 (To record uncollectible account written off) b. Nov. 6 Accounts Receivable-Barclay Company 6900 Allowance for Uncollectible Accounts 6900 (To reinstate account previously written off) Cash 6900 Accounts Receivable-Barclay Company 6900 (To record collection on account) c. Nov. 30 Bad debts expense 69440 Allowance for Uncollectible Accounts 69440 (To record bad debts expense)