The following selected transactions were taken from the records of Rustic Tables
ID: 2742678 • Letter: T
Question
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31, 2016:
Rustic Tables Company prepared the following aging schedule for its accounts receivable:
Required:
June 8. Wrote off account of Kathy Quantel, $8,475. Aug. 14. Received $2,960 as partial payment on the $12,480 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,475 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $4,625 Greg Gagne 3,595 Amber Kisko 7,175 Shannon Poole 3,025 Niki Spence 6,650 31. If necessary, record the year-end adjusting entry for uncollectible accounts. A. Journalize the transactions for 2016 under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted PAGE 1 JOURNAL Score: 0/186 DATE DESCRIPTION POST. REF DEBIT CREDIT 10 12 13 14 5Explanation / Answer
A. Direct write-off method:
B. Allowance Method:
Ageing Schedule of receivables:
C. Higher by $ ( 54,060 - 34,590) = $ 19,470
Date Account Titles Debit Credit $ $ June 8 Bad debt expense 8,475 Accounts receivable- Kathy Quantel 8,475 August 14 Cash 2,960 Bad debt expense 9,520 Accounts receivable- Rosalie Oakes 12,480 October 16 Accounts receivable- Kathy Quantel 8,475 Bad debt expense 8,475 Cash 8,475 Accounts receivable - Kathy Quantel 8,475 Dec 31 Bad debt expense 25,070 Accounts receivable - Wade Dolan 4,625 Accounts receivable - Greg Gagne 3,595 Accounts receivable- Amber Kisko 7,175 Accounts receivable - Shannon Poole 3,025 Accounts receivable - Nick Spence 6,650