On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Hunt Co estimates that 9 of its accounts receivable balance of $90,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts On May 11, 2014, Hunt Co determined ...

December 31 2013 Bad Debt Expense 9500 Allowance for Doubtful A ...

On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Hunt

Question:

On December 31, 2013, when its Allowance for Doubtful Accounts had a debit balance of $1,400, Hunt Co. estimates that 9% of its balance of $90,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2014, Hunt Co. determined that J. Byrd’s account was uncollectible and wrote off $1,200. On June 12, 2014, Byrd paid the amount previously written off.

Instructions
Prepare the journal entries on December 31, 2013, May 11, 2014, and June 12, 2014.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...