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Q a Chrome File Edit View History Bookmarks People Window Help AY R Q OD) 4% D Sat 8:49 PM O 0 0 CengageNOWV2 Online teaching and learning resource from Cengage Learning © v2.cengagenow.com/irntakeAssignmenttakeAssignmentMain.do?invoker=&takeAssignmentSessionLocator; -assignment-take&inprogress;=false Chapter 8 Assignment Show Me How Calculator Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question | = = = Instructions The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13 Wrote off account of Dean Sheppard, $8,300. May 15 Received $590 as partial payment on the $7,270 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27 Received $8,300 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $2,120 Duane DeRosa 3,590 Teresa Galloway 4,640 Check My Work Previous Next as a GOOIP SD 8 A WE DON . 7

Explanation / Answer

A. Journal

B. Journal

C. Net income under Direct method would have been higher by $30624.

Journal Accounting Equation Date Account Name Debit Credit Assets Liabilities Equity Apr 13 Bad debt expense $8300 -8300 -8300 Accounts receivable-Dean Sheppard $8300 May 15 Cash 590 -590 -590 Bad debt expense 6680 -6680 -6680 Accounts receivable-Dan Pyle Jul 27 Accounts receivable 8300 8300 8300 Bad debt expense 8300 July 27 Cash 8300 Accounts receivable 8300 Dec 31 Bad debt expense 13375 -13375 -13375 Accounts receivable-Paul Chapman 2120 Duane DeRosa 3590 Teresa Galloway 4640 Ernie Kiatt 1310 Marty Richey 1715 Dec 31 No entry

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