6. For a business that uses the allowance method of accounting for uncollectible receivables: (a) Journalize the entries to record the following: (1) Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000. (2) In March of the next year, the $350 owed by Fronk Co. on account is written off as uncollectible. (3) In November of the next year, $200 of the Fronk Co. account is reinstated and payment of that amount is received. (4) In December of the next year, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.

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Business

Cloe Pittman

2 August, 16:28

6. For a business that uses the allowance method of accounting for uncollectible receivables: (a) Journalize the entries to record the following: (1) Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000. (2) In March of the next year, the $350 owed by Fronk Co. on account is written off as uncollectible. (3) In November of the next year, $200 of the Fronk Co. account is reinstated and payment of that amount is received. (4) In December of the next year, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.

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Frau Frau · Answer 1

The journal entries are shown below:

1 Bad debt expense $18,000

To Allowance for doubtful account $18,000

(Being the bad debt expense is recorded)

2 Allowance for doubtful account $350

To Accounts receivable $350

(Being the written off amount is recorded)

3 Accounts receivable $200

To Allowance for doubtful account $200

[Being account reinstated]

Cash $200

To Accounts receivable $200

(Being the payment is received)

4 Cash $400

Allowance for doubtful account $200

To Accounts receivable $600

(Being the amount received is recorded)