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sanfratello1081
sanfratello1081
06.05.2020 • 
Business

The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts. journal entries. Abbreviations used: Adj = Adjusting entry. Clos: Closing entry. WO= Write-off

2018

Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $410,000 and recorded that amount as expense. The company uses the allowance method.
31 Made the closing entry for bad debts expense.
2019

Jan. 17 Sold merchandise inventory to Marty White, $400 on account. Ignore Cost of Goods sold.
Jun. 29 Wrote off Marty White's account as uncollectable after repeated efforts to collect from him.
Aug. 6 Received $400 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full and recorded the cash receipt.
Dec. 31 Made a compound entry to write off the following accounts as uncollectable: Barry Krisp, $1,600; Maria Bryant, $1,100; and Richard Renik, $400.
31 Estimated that bad debts expense for the year was 3% of credit sales of $490,000 and recorded the expense.
31 Made the closing entry for bad debts expense.
Begin by recording the 2018 transaction in the general journal.

Dec. 31. Estimated that bad debts expense for the year was 3% of credit sales of $410,000 and recorded that amount as expense. The company uses the allowance method.

Date Accounts and Explanation Debit Credit
2018
Dec. 31
(Adj)

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