ENTRIES FOR BAD DEBT EXPENSE UNDER THE DIRECT WRITE-OFF AND ALLOWANCE METHODS

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UBUUR Calculator Print Item Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $21,550 Lee Drake Jenny Green 33,925 27,565 19,460 $102,500 Mike Lamb Total The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts $715,000 0-30 days 1% 31-60 days 61-90 days 91-120 days 310,000 102,000 76,000 97,000 $1,300,000 More than 120 days Total receivables genow. com m ent/take Assignment Man.do invokere&takeAssignmentSessiontogatorprogress Balse eBook Calculator Print Item a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. JOIN b. Journalize the write-offs and the year and adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank. Write-off Adjustment Previous Next Check My Work 2 more Check My Work uses remaining LIVLILUUIORU- ReassignmentSessionLocator Binprogress=false POO b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank. Write off 11100 Adjustment C. How much higher (lower) would Seaforth International's net income have been under the allowance method than under the direct write-off method? Check My Work 2 more Check My Work uses remaining Previous Next