On December 31, 2012, Central Freight reported an allowance for uncollectible ac

Question

On December 31, 2012, Central Freight reported an allowance for uncollectible accounts of $15,300. During 2013, Central wrote off $17,000 in accounts receivable. Included in the write-off was Roskoff Corp.'s account in the amount of $750. Roskoff subsequently paid this balance. At December 31, 2013, an analysis of the accounts receivable aging schedule indicated the need for an allowance for uncollectible accounts of $14,900.

Required: Prepare all implied journal entries relative to bad debt expense and the allowance for uncollectible accounts.

Explanation / Answer

Genaral journal 2013 1 Write off this year: Bad debts A/C Dr 17000 Allowance for doubt full A/c CR 17000 Allowance for doubt full A/C DR 17000 Accounts Receivable A/C CR 17000 2 Recover from ROSK OFF CORP Accounts Receivable A/c DR 750 Allowance for doubt full A/c CR 750 3 Cash received Cash A/C DR 750 Accounts Receivable A/C CR 750 31/12/13 Un Collectable Expense A/C Dr 16650 Allowance for doubt full A/c DR 16650 Opening bal 15300 Write off this year 17000 Collections -750 Balance 31550 Balance actual 14900 16650

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