At December 31, 2017, the trial balance of Skysong, Inc. contained the following

Question

At December 31, 2017, the trial balance of Skysong, Inc. contained the following amounts before adjustment Debit Credit Accounts Receivable Allowance for Doubtful Accounts Sales Revenue $180,200 1,650 797,300 (a) Prepare the adjusting entry at December 31, 2017, to record bad debt expense, assuming that the aging schedule indicates that $10,550 of accounts receivable will be uncollectible (b) Repeat part (a), assuming that instead of a credit balance there is a $1,650 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2018, a $1,920 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Skysong, Inc. uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually No. Account Titles and Explanation Debit Credit

Explanation / Answer

No. Accounts Titles & Explanations Debit Credit a Bad debts expense (10550 - 1650) 8900 Allowance for doubtful accounts 8900 b Bad debts expense (1650 + 10550) 12200 Allowance for doubtful accounts 12200 c Allowance for doubtful accounts 1920 Accounts receivables 1920 d Bad debts expense 1920 Accounts receivables 1920

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