Entries for Bad Debt Expense Under the Direct Write-Off 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, $9,230.

Aug. 14.

Received $6,550 as partial payment on the $16,520 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.

Oct. 16.

Received the $9,230 from Kathy Quantel, whose account 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	$2,680
Greg Gagne	1,660
Amber Kisko	6,370
Shannon Poole	3,690
Niki Spence	1,020

Dec. 31.

If necessary, record the year-end adjusting entry for uncollectible accounts.

If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

a. Journalize the transactions under the direct write-off method.

June 8		fill in the blank 7e993a07df99012_2	fill in the blank 7e993a07df99012_3
		fill in the blank 7e993a07df99012_5	fill in the blank 7e993a07df99012_6
Aug. 14		fill in the blank 7e993a07df99012_8	fill in the blank 7e993a07df99012_9
		fill in the blank 7e993a07df99012_11	fill in the blank 7e993a07df99012_12
		fill in the blank 7e993a07df99012_14	fill in the blank 7e993a07df99012_15
Oct. 16		fill in the blank 7e993a07df99012_17	fill in the blank 7e993a07df99012_18
		fill in the blank 7e993a07df99012_20	fill in the blank 7e993a07df99012_21
Oct. 16		fill in the blank 7e993a07df99012_23	fill in the blank 7e993a07df99012_24
		fill in the blank 7e993a07df99012_26	fill in the blank 7e993a07df99012_27
Dec. 31		fill in the blank 7e993a07df99012_29	fill in the blank 7e993a07df99012_30
		fill in the blank 7e993a07df99012_32	fill in the blank 7e993a07df99012_33
		fill in the blank 7e993a07df99012_35	fill in the blank 7e993a07df99012_36
		fill in the blank 7e993a07df99012_38	fill in the blank 7e993a07df99012_39
		fill in the blank 7e993a07df99012_41	fill in the blank 7e993a07df99012_42
		fill in the blank 7e993a07df99012_44	fill in the blank 7e993a07df99012_45
Dec. 31		fill in the blank 7e993a07df99012_47	fill in the blank 7e993a07df99012_48
		fill in the blank 7e993a07df99012_50	fill in the blank 7e993a07df99012_51

b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $27,690 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:

Aging Class (Number of Days Past Due)									Receivables Balance on December 31				Estimated Percent of Uncollectible Accounts
								0-30 days	$443,000				2	%
								31-60 days	166,000				9
								61-90 days	53,000				20
								91-120 days	19,000				45
								More than 120 days	27,000				90
								Total receivables	$708,000

June 8		fill in the blank 0be3d2f4efe0030_2	fill in the blank 0be3d2f4efe0030_3
		fill in the blank 0be3d2f4efe0030_5	fill in the blank 0be3d2f4efe0030_6
Aug. 14		fill in the blank 0be3d2f4efe0030_8	fill in the blank 0be3d2f4efe0030_9
		fill in the blank 0be3d2f4efe0030_11	fill in the blank 0be3d2f4efe0030_12
		fill in the blank 0be3d2f4efe0030_14	fill in the blank 0be3d2f4efe0030_15
Oct. 16		fill in the blank 0be3d2f4efe0030_17	fill in the blank 0be3d2f4efe0030_18
		fill in the blank 0be3d2f4efe0030_20	fill in the blank 0be3d2f4efe0030_21
Oct. 16		fill in the blank 0be3d2f4efe0030_23	fill in the blank 0be3d2f4efe0030_24
		fill in the blank 0be3d2f4efe0030_26	fill in the blank 0be3d2f4efe0030_27
Dec. 31		fill in the blank 0be3d2f4efe0030_29	fill in the blank 0be3d2f4efe0030_30
		fill in the blank 0be3d2f4efe0030_32	fill in the blank 0be3d2f4efe0030_33
		fill in the blank 0be3d2f4efe0030_35	fill in the blank 0be3d2f4efe0030_36
		fill in the blank 0be3d2f4efe0030_38	fill in the blank 0be3d2f4efe0030_39
		fill in the blank 0be3d2f4efe0030_41	fill in the blank 0be3d2f4efe0030_42
		fill in the blank 0be3d2f4efe0030_44	fill in the blank 0be3d2f4efe0030_45
Dec. 31		fill in the blank 0be3d2f4efe0030_47	fill in the blank 0be3d2f4efe0030_48
		fill in the blank 0be3d2f4efe0030_50	fill in the blank 0be3d2f4efe0030_51

c. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method? by fill in the blank b0ae3ffc7f80fc5_2