Current Attempt in Progress During its first year of operations, Blossom Company had credit sales of $3,000,100: $610,000 remained uncollected at year-end. The credit manager estimates that $35.100 of these receivables will become uncollectible. (a) Prepare the journal entry to record the estimated uncollectibles. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit Prepare the current assets section of the balance sheet for Blossom Company. Assume that in addition to the receivables it has cash of $91.000, inventory of $131.000 and prepaid insurance of $7,800. (List Current Assets in order of liquidity) BLOSSOM COMPANY Balance Sheet (Partial) At the end of 2020. Oriole Co. has accounts receivable of $775,800 and an allowance for doubtful accounts of $71,100. 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.) Account Titles and Explanation Debit Credit (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 doubthul accounts has a credit balance of $1,880 (a) Prepare the adjusting journal entry to record bad debt expense for the year. Credit account titles are automatically indented when amount is entered. Do not indent manually) Debit Credit Account Titles and Explanation (b) If the allowance for doubtful accounts had a debit balance of $970 instead of a credit balance of $1.880, 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) Blue uses the direct write-oft 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 automatically indented when amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit Dec. 31 (0) If Allowance for Doubtful Accounts has a credit balance of $2,800 in the trial balance, journalize the adjusting entry at 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) Date Account Titles and Explanation Debit Credit Dec. 31 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.) Credit Account Titles and Explanation Dec. 31 Debit Date
