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At the end of 2020, Oriole Co. has accounts receivable of $775,800 and an allowance for doubtful accounts of 571,100. On January 24, 2021, the

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At the end of 2020, Oriole Co. has accounts receivable of $775,800 and an allowance for doubtful accounts of 571,100. On January 24, 2021, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $7.200. On March 4, 2021, Oriole Co.receives payment of $7.200 in full from Megan Gray. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Account Titles and Explanation (To reverse write-off) (To record collection from Gray) Crane Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $549.000 at the end of the year, and the allowance for doubtful accounts on a credit balance of $1.880 (a) Prepare the adjusting journal entry to record bad debt expense for the year. (Cedit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit (b) If the allowance for doubtful accounts had a debit balance of 5970 instead of a credit balance of 51.880, determine the amount to be reported for bad debt expense. Bad Debts Expense $ The ledger of Blue Company at the end of the current year shows Accounts Receivable 5121.000, Sales Revenue $854,000, and Sales Returns and Allowances $31.000. Journalize the following independent situations. (a) If Blue uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31 assuming Blue determines that L Dole's $2,100 balance is uncollectible. (Credit account titles are a e automatically Indented when amount is entered. Do not indent manually) Credit Date Account Titles and Explanation Dec. Debit 31 1 Allowance for Doubtful Accounts has a credit balance of $2,800 in the trial balance, journalize the adjusting entry December 31, assuming bad debts are expected to be 12% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Dec 31 Date (c) If Allowance for Doubtful Accounts has a debit balance of $300 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Date Dec. 31

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