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nost gold sou women's aw.. shophearts Job Description Cloud ing Yahoo Google Wikpeda Facebook T LdThetCh #20 Help Save i Exercise 7-11 Uncollectible accounts; allowance method; balance sheet approach [LO7-5,7-6) rado Rocky Cookie Company offers credit terms to its customers. At the end of 2018, accounts receivable totaled $650,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts $37,000 at the beginning of 2018 and $23,500 in receivables were written off was received in December from a custorfer whose applying a percentage of 10% to accounts receivable at the end of the year had a credit balance of during the year as uncollectible. Also, $1700 in cash account previously had been written off. The company estimates bad debts by Required: 1 Prepare joumal entries to record the write-off of receivables, the collection of $1700 for previously written off receivables, and the year-end adjusting entry for bad debt expense 2. How would accounts receivable be shown in the 2018 year-end balance sheet? Complete this question by entering your answers in the tabs below Requred 1 Required 2 Prepare journal entries to record the write-off of receivables, the collection of $1,700 for previously written off receivables, and the year-end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select-Nojourna Prev2 of 4 Next 3 4 8

Explanation / Answer

Notes:

Current Year Bad Debts Expenses = $650,000*10% - ($37,000 - $23,500) = $51,500

Debit Credit Allowance for Uncollectible Accounts $23,500 Receivable w/o $23,500 Bank A/c $1,700 To Bad-debts Recovery (Income) $1,700 Bad debts Expenses $51,500 To Allowance for Uncollectible Accounts $51,500

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