Entries for Uncollectible Accounts, using Direct Write-Off Method Journalize the following transactions in the accounts of Canyon River Medical Co. a medical equipment company that uses the direct write-off method of accounting for uncollectible receivables Jan. 19 Sold merchandise on account to De Kyle Norby, $55,400. The cost of goods sold was $29,900. June 2 Received $11,600 from Dr. Kyle Norby and wrote off the remainder owed on the sale of January 19 as uncollectible. Oct. 23 Reinstated the account of Dr. Kyle Norty that had been written off on June 2 and received $43,800 cash in full payment If an amount box does not require an entry, leave it blank. Jan, 19-sale Accounts Receivable-Dr. Kyle Norby Sales Jan. 19-cost Cost of Goods Sold Inventory June 2 Cash Bad Debt Expense Accounts Receivable-Dr. Kyle Norby II III II II II III II IO Od. 23-einstate Accounts Receivable-Dr. Kyle Norby Bad Debt Expense Oct 23-collection Cash Accounts Receivable-Dr. Kyle Norby Check My Work Entries for Uncollectible Receivables, using Allowance Method Journalize the following transactions in the accounts of Zippy Interiors Company, a restaurant supply company that uses the allowance method of accounting for uncollectible receivables: May 24 Sold merchandise on account to Old Town Cafe, $17,400. The cost of goods sold was $12,500. Sept. 30 Received $4,000 from Old Town Cafe and wrote off the remainder owed on the sale of May 24 as uncollectible. Dec. 7 Reinstated the account of Old Town Cafe that had been written off on September 30 and received $13,400 cash in full payment. If an amount box does not require an entry, leave it blank May 24-sale Accounts Receivable-Old Town Cafe Sales May 24-cost Cost of Goods Sold Inventory Sept. 30 Cash Allowance for Doubtful Accounts Accounts Receivable-Old Town Cate v II II III II II II II III II II Dec. 7.reinstate Accounts Receivable-Old Town Cafe v Allowance for Doubtful Accounts Dec. 7-collection Cash Accounts Receivable-Old Town Cafe Providing for Doubtful Accounts At the end of the current year, the accounts receivable account has a debit balance of $1,221,000 and sales for the year total $13,840,000 a. The allowance account before adjustment has a debit balance of $16,500. Bad debt expense is estimated at 1/2 of 1% of sales. b. The allowance account before adjustment has a debit balance of $16,500. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $52,800 c. The allowance account before adjustment has a credit balance of $7,600. Bad debe expense is estimated at 3/4 of 1% of sales. d. The allowance account before adjustment has a credit balance of $7,600. An aging of the accounts in the customer ledger indicates estimated doubtful accounts of $63,100. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the assumptions (a through d) listed above, a. b. S C. d. $ eBook Show Me How Estimating Doubtful Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplles. An aging of the company's accounts receivable on December 31, and a historical analysis of the percentage of uncollectible accounts in each age category are as follows: Age Class Balance Percent Uncollectible Not past due 3/4 2 1-30 days past due 31-60 days past due 61-90 days past due 9 $520,000 57,200 26,000 18,700 13,500 9,900 5645,300 15 42 91-180 days past due Over 180 days past due 80 Estimate what the proper balance of the allowance for doubtful accounts should be as of December 31 Percent Estimated Uncollectible Age Class Balance Uncollectible Accounts Amount Not past due $520,000 1-30 days past due 57,200 2 31-60 days past due 26,000 > 61-90 days past due 15 18,700 13,500 91-180 days past due 42 Over 180 days past due 9,900 BO Total $645,300
