Entries for Bad Debt Expense under the D and Allowance Method The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $6,670. Aug. 14. Received $4,740 as partial payment on the $11,940 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $6,670 from Kathy Quantel, which had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $1,930 Greg Gagne 1,200 Amber Kisko 4,600 Shannon Poole 2,670 Niki Spence 730 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. The company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance of Days Past Due) on December 31 0-30 days $320,000 31-60 days 120,000 61-90 days 38,000 91-120 days 14,000 More than 120 days 19,000 Total receivables $511,000 Estimated Percent of Uncollectible Accounts 2 % 9 20 55 90 For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Feedback C. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by Feedback Feedback Entries for Bad Debt Expense under the D and Allowance Method The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $6,670. Aug. 14. Received $4,740 as partial payment on the $11,940 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $6,670 from Kathy Quantel, which had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $1,930 Greg Gagne 1,200 Amber Kisko 4,600 Shannon Poole 2,670 Niki Spence 730 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. The company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance of Days Past Due) on December 31 0-30 days $320,000 31-60 days 120,000 61-90 days 38,000 91-120 days 14,000 More than 120 days 19,000 Total receivables $511,000 Estimated Percent of Uncollectible Accounts 2 % 9 20 55 90 For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). Dec. 31-adjusting Bad Debt Expense Allowance for Doubtful Accounts Feedback C. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? by Feedback Feedback
