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8-3 Jan. 19 Sold merchandise on account to Dr. Kyle Norby, $15,160. The cost of goods sold was $9,270. June 2 Received $4,280 from Dr.
8-3
Jan. | 19 | Sold merchandise on account to Dr. Kyle Norby, $15,160. The cost of goods sold was $9,270. |
June | 2 | Received $4,280 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible. |
Oct. | 23 | Reinstated the account of Dr. Kyle Norby that had been written off on June 2 and received $10,880 cash in full payment. |
Journalize the above transactions in the accounts of Canyon River Medical Co., a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables.
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Canyon River Medical Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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8-6
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Providing for doubtful accounts
At the end of the current year, the accounts receivable account has a debit balance of $1,236,000 and sales for the year total $14,010,000.
- The allowance account before adjustment has a debit balance of $16,700. Bad debt expense is estimated at 1/2 of 1% of sales.
- The allowance account before adjustment has a debit balance of $16,700. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $53,400.
- The allowance account before adjustment has a credit balance of $9,200. Bad debt expense is estimated at 3/4 of 1% of sales.
- The allowance account before adjustment has a credit balance of $9,200. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $76,400.
Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above.
Assumption | Amount |
---|---|
a. | $fill in the blank 1 |
b. | $fill in the blank 2 |
c. | $fill in the blank 3 |
d. | $fill in the blank 4 |
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