Part 3: Accounting for Bad Debts (25 Points) The following information was abstr

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 November 4: The receivable from Bancroft Company, with a balance of $4,200, was judged to be uncollectible and written off . Debits Credits Date Account Titles and Explanations November 6: Dunstan Corporation received $6,900 from Barclay Company for an account receivable the was previously written off b. Date Account Titles and Explanations Debits Credits Based on an aging of account receivable, the bad debts expense for November was $69,440 c. DateAccount Titles and Explanations Debits Credits

Explanation / Answer

a Nov-04 Allowance for uncollectible accounts 4200              Accounts Receivable 4200 b Nov-06 Accounts Receivable 6900            Allowance for uncollectible accounts 6900 Nov-06 Cash 6900              Accounts Receivable 6900 c Nov-30 Bad debts expense 69440            Allowance for uncollectible accounts 69440

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---