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Estimating and Recording Bad Debt Estimates and Write-offs, Reporting of Accounts Receivable Master Company's December 31, 2019, balances related to accounts receivable follow Accounts receivable
Estimating and Recording Bad Debt Estimates and Write-offs, Reporting of Accounts Receivable Master Company's December 31, 2019, balances related to accounts receivable follow Accounts receivable $80.000 Allowance for doubtful accounts 14.000 CH During 2020, 59,000 of accounts receivable is considered uncollectible, and no more effort to collect these accounts will be made. Total sales for 2020 are $340,000, of which 540,000 are cash sales. A total of $180,000 was collected on account during 2020, Assuming that Master uses the allowance method to estimat net accounts receivable and uses 9% of accounts receivable as its estimate of expected credit losses, prepare the (1) joumal entries to record write-offs and bad debt expense for 2020, and (2) disclosure on gross and net accounts receivable on the balance sheet at December 31, 2020 b. How would the answers to part a change tif at all assuming instead that the December 31, 2019, balance in the allowance for doubtful accounts was a debit balance of $1.0007 Account Name Dr. Cr. Date Dec 31, 2020 . . Leden we Dec 31, 2020 0 Text cord bad debt and 2 Note: Do not use negative signs with your answers, Balance Sheet, December 31, 2020 Accounts receivable Less: Allowance for doubtful accounts Accounts receivable, net 5 0 b 1. Date Account Name Dr. Cr. Dec 31, 2020 e 0 To record account of Dec 31, 2020 e 0 0 To record and debt expense 2. Note: Do not use negative signs with your answers. Balance Sheet, December 31, 2020 Accounts receivable Less: Allowance for doubtfut accounts D Accounts receivable, net D
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