Question
Accounts receivable transactions are provided below for J Blossom Co. Dec. 31, 2020 The company estimated that 3% of its accounts receivable would become uncollectible.
Accounts receivable transactions are provided below for J Blossom Co.
Dec. 31, 2020 | The company estimated that 3% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $600,000 and $2,000 (debit), respectively. | |
Mar. 5, 2021 | The company determined that R. Mirzas $3,000 account and D. Wights $6,000 account were uncollectible. The companys accounts receivable were $630,000 before the accounts were written off. | |
June 6, 2021 | Wight paid the amount that had been written off on March 5. The companys accounts receivable were $591,000 prior to recording the cash receipt for Wight. |
Prepare the journal entries on December 31, 2020, March 5, 2021, and June 6, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Date | Account Titles and Explanation | Debit | Credit |
Dec. 31, 2020Mar. 5, 2021June 6, 2021 | Accounts Receivable - MirzaAllowance for Doubtful AccountsNo EntryBad Debts ExpenseAccounts Receivable - WightCash | ||
CashAccounts Receivable - WightAllowance for Doubtful AccountsBad Debts ExpenseAccounts Receivable - MirzaNo Entry | |||
(To record estimate of uncollectible accounts.) | |||
Dec. 31, 2020Mar. 5, 2021June 6, 2021 | No EntryAllowance for Doubtful AccountsAccounts Receivable - MirzaCashBad Debts ExpenseAccounts Receivable - Wight | ||
Allowance for Doubtful AccountsNo EntryAccounts Receivable - MirzaCashAccounts Receivable - WightBad Debts Expense | |||
(To record write off of accounts receivable.) | |||
Dec. 31, 2020Mar. 5, 2021June 6, 2021 | Bad Debts ExpenseAllowance for Doubtful AccountsAccounts Receivable - MirzaNo EntryCashAccounts Receivable - Wight | ||
Allowance for Doubtful AccountsCashBad Debts ExpenseAccounts Receivable - WightNo EntryAccounts Receivable - Mirza | |||
(To record write off of accounts receivable.) | |||
Dec. 31, 2020Mar. 5, 2021June 6, 2021 | Allowance for Doubtful AccountsBad Debts ExpenseNo EntryAccounts Receivable - MirzaCashAccounts Receivable - Wight | ||
Accounts Receivable - MirzaCashNo EntryBad Debts ExpenseAccounts Receivable - WightAllowance for Doubtful Accounts | |||
(To reverse write off.) | |||
Dec. 31, 2020Mar. 5, 2021June 6, 2021 | Allowance for Doubtful AccountsBad Debts ExpenseAccounts Receivable - MirzaCashNo EntryAccounts Receivable - Wight | ||
CashBad Debts ExpenseAccounts Receivable - WightAccounts Receivable - MirzaAllowance for Doubtful AccountsNo Entry | |||
(Collection of account that was previously written off.) |
eTextbook and Media
Assistance Used
List of Accounts
Question Part Score
--/2.66
Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry.
Allowance for Doubtful Accounts | |||||
Date | Explanation | Ref. | Debit | Credit | Balance |
Dec. 31, 2020 | Balance unadjusted Debit | ||||
Dec. 31, 2020 | AJE | ||||
Mar. 5, 2021 | Write off Mirza | ||||
Mar. 5, 2021 | Write off Wight | ||||
June 6, 2021 | Reverse write off |
eTextbook and Media
Assistance Used
List of Accounts
Question Part Score
--/2.67
Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2021.
Carrying amount before recovery | $ | |
Carrying amount after recovery | $ |
eTextbook and Media
List of Accounts
Question Part Score
--/2.67
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