The following selected transactions were taken from the records of Rustic Tables
ID: 342424 • Letter: T
Question
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8 Wrote off account of Kathy Quantel, $8,485. Aug. 14 Received $3,045 as partial payment on the $12,535 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16 Received the $8,485 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 $4,640 Greg Gagne 3,640 Amber Kisko 7,150 Shannon Poole 2,970 Niki Spence 6,630 31 If necessary, record the year-end adjusting entry for uncollectible accounts. A. Journalize the transactions 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 tities. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITYExplanation / Answer
Rustic Tables Co
Date
Account Titles and Explanation
Debit
Credit
8-Jun
Bad Debts Expense
$8,485
Accounts Receivable - Kathy Quantel
$8,485
(To write-off Kathy Quantel account as bad debts expense)
14-Aug
Cash
$3,045
Bad Debts Expense
$9,490
Accounts Receivable - Rosalie Oakes
$12,535
(To record partial payment received and write-off of remaining balance as bad debts)
16-Oct
Accounts Receivable - Kathy Quantel
$8,485
Bad Debts Expense
$8,485
(To reinstate Kathy Quantel's account)
Cash
$8,485
Accounts Receivable - Kathy Quantel
$8,485
(To record cash receipt )
31-Dec
Bad Debts Expense
$25,030
Accounts Receivable - Wade Dolan
$4,640
Accounts Receivable - Greg Gagne
$3,640
Accounts Receivable - Amber Kisko
$7,150
Accounts Receivable - Shannon Poole
$2,970
Accounts Receivable - Nikki Spence
$6,630
(To record accounts identified as uncollectible as bad debts expense)
No Entry
Under direct write-off method no adjusting entry is needed.
Date
Account Titles and Explanation
Debit
Credit
8-Jun
Bad Debts Expense
$8,485
Accounts Receivable - Kathy Quantel
$8,485
(To write-off Kathy Quantel account as bad debts expense)
14-Aug
Cash
$3,045
Bad Debts Expense
$9,490
Accounts Receivable - Rosalie Oakes
$12,535
(To record partial payment received and write-off of remaining balance as bad debts)
16-Oct
Accounts Receivable - Kathy Quantel
$8,485
Bad Debts Expense
$8,485
(To reinstate Kathy Quantel's account)
Cash
$8,485
Accounts Receivable - Kathy Quantel
$8,485
(To record cash receipt )
31-Dec
Bad Debts Expense
$25,030
Accounts Receivable - Wade Dolan
$4,640
Accounts Receivable - Greg Gagne
$3,640
Accounts Receivable - Amber Kisko
$7,150
Accounts Receivable - Shannon Poole
$2,970
Accounts Receivable - Nikki Spence
$6,630
(To record accounts identified as uncollectible as bad debts expense)