2. Kendated the account of Dr. Kyle Norby that had been written off on June and received $5,900 cash in payment EX 8-4 Entries for uncollectible receivables, using allowance method Obj4 Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables. May 24. Sold merchandise on account to Old Town Cafe, 524450. The cost of goods sold was $14.500. Sept. 30. Received 59,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible Dec. 7. Reinstated the account of Old Town Cafe that had been written off on September 30 and received 515450 cash in full payment EX 8-5 Entries to write off accounts receivable Obj. 3.4 Creative Solutions Company, a computer consulting firm, has decided to write off the $13,780 balance of an account owed by a customer, Wil Treadwell. Journalize the entry to record the write-off. assuming that (a) the direct write-off method is used and (b) the allowance method is used. 26 Chapter 8 Receivables a $128.450 b. $174.500 EX 8-6 Providing for doubtful accounts Obj. At the end of the current year, the accounts receivable account has a debit balance of $1,835,000 and sales for the year total $25,690,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptions: 2. The allowance account before adjustment has a debit balance of $12.500. Bad debt expense is estimated at 1 of 1 of sales b. The allowance account before adjustment has a debit balance of $12.500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $162.000 The allowance account before adjustment has a credit balance of $26.810. Bad debt expense is estimated at of 1% of sales d. The allowance account before adjustment has a credit balance of $26.810. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of 5171,200. Avalanche Auto, 77 days EX 8-7 Number of days past due Obj. 4 Toot Auto Supply distributes new and used automobile parts to local dealers throughout the Midwest. Toot's credit terms are n/30. As of the end of business on October 31, the following accounts receivable were past due: Account Due Date Amount Avalanche Auto August 15 $12.000 Bales Auto October 4 2.400 Derby Auto Repair June 26 2.900 Lucky's Auto Repair September 10 6.500 Pit Stop Auto September 24 1.100 Reliable Auto Repair July 2 9.750 Trident Auto August 25 1800 Valley Repair & Tow May 23 4.000 Determine the number of days each account is past due as of October 31