Entries for Bad Debt pense Under the Direct Write-on 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 of account of Kathy Quantel, $9,340, Aug. 14. Received $6,630 as partial payment on the $16,720 account of Rosalie Oakes. Wrote of the remaining balance as uncollectible. Oct. 16. Received the 59,340 from Kathy Quantel, which had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote of the following accounts as uncollectible (record as one journal entry): Wade Dolan Greg Gagne $2,710 1,680 Amber Kisko 6,440 3,740 Shannon Poole Nikl Spence 1.030 Dec. 31 If necessary, record the year-end adjusting entry for the uncollectible accounts. Estimated Percent of 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 $448,000 31-60 days 168,000 61-90 days 53,000 91-120 days 20,000 More than 120 days 27,000 396 7 30 50 75 Estimated Percent of Uncollectible Accounts 3% The company prepared the following aging schedule for its accounts receivables Aging Class (Number Receivables Balance of Days Past Due) on December 31 0-30 days $448,000 31-60 days 168,000 61-90 days 53,000 91-120 days More than 120 days 27,000 Total receivables $716,000 7 30 20,000 50 75 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), a. Journaize the transactions under the direct write-off method. June 8 Bad Debt Expense Accounts Receivable-Kathy Quantel 9,140 9,40 6.610 Aug. 14 Cash Bad Debt Expense Accounts Receivable-Rosalie Oakes ] 1 100 I Oct. 16-reinstate not hullertinn Oct. 16-reinstate Oct. 16-collection Dec. 31-write-off II NI I do I ) Dec. 31-adjusting Feedback Check My Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is determined to be worthless Under the allowance method once a customer account is identified as uncollectible, it is written off against the allowance account Learning Objective 5. b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of 528,020 at the beginning of the year and the company uses the analysis of receivables method. June 8 Aug. 14 Oct 16-reinstate Oct. 16-collection I III III In Ilmul / Dec 31-write-off Dec. 31-adjusting Previous Next Check My Work Dec. 31-justing They Remember that under rett of method, Bad Dot bent is not recorded in the count is demed to be worthless under thence method once customer account is identified as collectible written of in the towancesco Learning Objectives How much Ngher (lower would Rustic Tables et income here been under the director method the under the allowance method DMW Compare the bed destinat sunt talants for both methoon Learning Djectives TOM W Pately.com
