Please answer a-d S8-5 Applying the allowance method to account for uncollectibl
ID: 2553900 • Letter: P
Question
Please answer a-d S8-5 Applying the allowance method to account for uncollectibles The Accounts Receivable balance and Allowance for Bad Debts for Signature Lamp Company at December 31, 2017, was $10,800 and $2,000 (credit balance), respectively. During 2018, Signature Lamp Company completed the following transactions: a. Sales revenue on account, $273,400 ignore Cost of Goods Sold). b. Collections on account, $223,000. c. Write-offs of uncollectibles, $5,900, d. Bad debts expense of $5,200 was recorded.
Explanation / Answer
Answer
Transactions
Debit ($)
Credit ($)
Accounts receivables ($)
Allowance for Bad Debts ($)
Opening Balance
10800
2000
a.
Accounts receivables
273400
Sales Revenue
273400
273400
(sale recorded)
b.
Cash
223000
Accounts receivables
223000
-223000
(cash received)
c.
Allowances for Bad Debts
5900
-5900
Accounts receivables
5900
-5900
(final write off of uncollectible)
d.
Bad Debt Expense
5200
Allowances for Bad Debts
5200
5200
(estimated bad debt expenses)
Total / Balance
$507500
$507500
$55300
$1300
Current Assets:
Accounts receivables
$55300
Less: Allowances for Bad Debts
$1300
Net Accounts Receivables
$54000
Transactions
Debit ($)
Credit ($)
Accounts receivables ($)
Allowance for Bad Debts ($)
Opening Balance
10800
2000
a.
Accounts receivables
273400
Sales Revenue
273400
273400
(sale recorded)
b.
Cash
223000
Accounts receivables
223000
-223000
(cash received)
c.
Allowances for Bad Debts
5900
-5900
Accounts receivables
5900
-5900
(final write off of uncollectible)
d.
Bad Debt Expense
5200
Allowances for Bad Debts
5200
5200
(estimated bad debt expenses)
Total / Balance
$507500
$507500
$55300
$1300
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.