Ask Question
19 May, 08:53

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,458, Whispering Winds Corp. estimates that 10% of its accounts receivable balance of $98,200 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Whispering Winds Corp. determined that B. Jared's account was uncollectible and wrote off $1,283. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

+3
Answers (1)
  1. 19 May, 11:15
    0
    1. Bad Debt Expense A/c Dr, $11,278

    ($9,820 + $1,458)

    To Allowance for doubtful accounts $11,278

    (Being bad debt expenses is recorded)

    2. Bad debts A/c $1,283

    To Allowance for Doubtful accounts $1,283

    (Being uncollectible and wrote off is recorded)

    3. Accounts Receivable A/c Dr, $1,283

    To Allowance for Accounts receivable $1,283

    (Being written off is recorded)

    4. Cash A/c Dr, $1,283

    To Accounts Receivable $1,283

    (Being cash is recorded)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,458, Whispering Winds Corp. estimates that 10% of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers