On December 31, 2017, Ling Co. estimated that 4% of its net sales of $455,200 wi

Question

On December 31, 2017, Ling Co. estimated that 4% of its net sales of $455,200 will become uncollectible. The company recorded this amount as an addition to Allowance for Doubtful Accounts. On May 11, 2018, Ling Co. determined that the Jeff Shoemaker account was uncollectible and wrote off $2,276. On June 12, 2018, Shoemaker paid the amount previously written off. Prepare the journal entries on December 31, 2017, May 11, 2018, and June 12, 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually Record journal entries in the order presented in the problem.) DateAccount Titles and Explanation Debit Credit (To reverse write-off) (To record collection of write-off)

Explanation / Answer

Dec-31-17 Bad debts expense 18208 =455200*4%       Allowance for Doubtful Accounts 18208 May-11-18 Allowance for Doubtful Accounts 2276        Accounts Receivable 2276 Jun-12-18 Accounts Receivable 2276       Allowance for Doubtful Accounts 2276 Jun-12-18 Cash 2276        Accounts Receivable 2276

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