Aging of accounts receivable allowance method (Learning Objective 4)

5–10 min.

The following information relates to Hani Company’s 2014 operations. Hani Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record Hani Company’s 2014 transactions.

a. Sold merchandise to Nadim for $2,000, terms n/30.

b. Received $500 from Nadim on account.

c. Wrote off as uncollectible the balance of the Nadim account when he declared bankruptcy.

d. Unexpectedly received a check for $600 from Nadim.

AppendixLO1