E8.5

Journal de entries to record allow for doubtful accounts using two different bases Prepare the entry to record the write-off of uncollectible accounts during the period. c. Prepare the entries to record the recovery of the uncollectible account during the period. d. Prepare the entry to record bad debt expense for the period. e. Determine the ending balances in Accounts Receivable and Allowance for Doubtful Accounts. f. What is the net realizable value of the receivables at the end of the period? E8.5 (LO 2), AP The ledger of Macarty Company at the end of the current year shows Accounts Receiv- able $78,000, Credit Sales $810,000, and Sales Returns and Allowances $40,000. Instructions a. If Macarty uses the direct write-off method to account for uncollectible accounts, Joumalize the entry at December 15 if Macarty determines that Matisse's $900 balance is uncollectible. b. If Allowance for Doubtful Accounts has a credit balance of $1,100 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 10% of accounts receivable. c. If Allowance for Doubtful Accounts has a debit balance of $500 in the trial balance, journalize the adjusting entry at December 31, assuming uncollectibles are expected to be 8% of accounts receivable