Floppy Corp. has the following information regarding its allowance for uncollect
ID: 2416007 • Letter: F
Question
Floppy Corp. has the following information regarding its allowance for uncollectible accounts. Allowance for Uncollectible Accounts & provision for Uncollectible Accounts for the 2014 & 2015: Balance December 31, 2014 $31,000
Write-offs during 2015 (23,000)
Recoveries during 2015 7,500
Required allowance at December 31, 2015 28,000
Prepare the journal entries for the write-offs & recoveries for 2015, and for the provision for uncollectible accounts expense at December 31, 2015. Do not provide any journal explanations. If no entry is necessary, write "no entry." The date for all entries will be 12/31/15.
Explanation / Answer
Write- offs of 23,000
31/12/2015 Provision for Uncollectible Accounts Dr 23,000
Debtors or Accounts receivable Cr 23,000
Recoveries of 7,500
31/12/2015 Provision for uncollectibel accounts Dr 7,500
Allowance for uncollectible accountsCr 7,500
Required allowance
31/12/2015 Allowance for uncollectible accounts Dr 28,000
Provision for uncollectibel accounts Cr 28,000
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