EX 9-14 Entries for bad debt expense under the direct write-off and allowance methods Obj. 5

The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:

1. Journalize the transactions under the direct write-off method. 2. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $36,000 on January 1 and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:

3. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method?

3 3rreise 914 Name: Section: Score: 0% Rey Code: [Key code here] Wi-1encior Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (") will appear to the right of an incorrect entry. If no joumal entry is required, select "No entry" and enter zeros in the amount columns. Oct. 16 16 Dec. 31 31 \begin{tabular}{|cccc|} \hline & JOURNAL & \\ \hline Date & Account & Deblt & Credit \\ \hline b. June 8nnnn & & \\ \hline \end{tabular} Aug. 14 Oct. 16 16 Dec. 31 31 c. Bad debt expense under: Allowance method Direct write-off method Difference 3 3rreise 914 Name: Section: Score: 0% Rey Code: [Key code here] Wi-1encior Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (") will appear to the right of an incorrect entry. If no joumal entry is required, select "No entry" and enter zeros in the amount columns. Oct. 16 16 Dec. 31 31 \begin{tabular}{|cccc|} \hline & JOURNAL & \\ \hline Date & Account & Deblt & Credit \\ \hline b. June 8nnnn & & \\ \hline \end{tabular} Aug. 14 Oct. 16 16 Dec. 31 31 c. Bad debt expense under: Allowance method Direct write-off method Difference