Journalize the adjusting entries: Based on your inquiries, you note that $35,000
ID: 2508224 • Letter: J
Question
Journalize the adjusting entries:
Based on your inquiries, you note that $35,000 of accounts receivable had been written off during the year. The clerk had debited bad debt expense for $35,000 and credited Accounts Receivable for $35,000. When $8,500 of accounts previously written off had been collected, the accountant debited cash and credited sales. The company uses the allowance method based on the aging of accounts receivable. Based on this method, Smith Co. determines that uncollectible accounts are $46,600 at the end of 2018.
Explanation / Answer
Answer
At the end of 2018 uncollectible accounts are $46600.
Date Particulars Dr Cr 31/12/2018 Accounts Receivable $8500 Allowance for Doubtful Debts $8500 31/12/2018 Cash $8500 Accounts Receivable $8500 (Being Coolection of accounts receivable previously written off) 31/12/2018 Bad Debt Expense $46600 Allowance for Doubtful Accounts $46600 ( To record the estimated uncollectable accounts )Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.