ooo Inland C.. LTE 3:05 PM 2096 edu gen wileyplus.com 1,400 Your answer is corre
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ooo Inland C.. LTE 3:05 PM 2096 edu gen wileyplus.com 1,400 Your answer is correct. Based on the information given, which method of accounting for bad debts is Darby Company using-the direct write-off method or the allowance method? Your answer is partially correct. Try again. b) Prepare the adjusting entry at December 31, 2017, for bad debt expense under each of the folliowing independent assumptions (1) An aging schedule indicates that $11,000 of accounts receivable will be uncollectible. (2) The company estimates that 1% of sales will be uncollectible. Repeat part (b) assuming that instead of a credit balance there is an $1,400 debit balance in Allowance for Doubtful Accounts During the next month, January 2018, a $2,800 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off, Repeat part (d) assuming that Darby uses the direct write-off method instead of the allowance method in accounting for uncollectible (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2 Dec. 3Explanation / Answer
Date Accounting titles & Explanations Debit Credit b-1) Bad debts expene 9600 Allowance for Doubtful accounts 9,600 (11,000-1,400) b-2)) Bad debts expene 9,354 Allowance for Doubtful accounts 9,354 (935,400*1%) c-1) Bad debts expene 12,400 Allowance for Doubtful accounts 12,400 (11000+1400) c-2 Bad debts expene 9,354 Allowance for Doubtful accounts 9,354 d) Allowance for Doubtful accounts 2,800 Accounts receivable 2,800 e) Bad debts expense 2,800 Accounts receivabl e 2,800
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