For a business that uses the allowance method of accounting for uncollectible receivables:

Required:

a.	Journalize the entries to record the following:
1.	Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000.*
2.	In March of the next year, the $350 owed by Fronk Co. on account is written off as uncollectible.*
3.	In November of the next year, $200 of the Fronk Co. account is reinstated and payment of that amount is received.*
4.	In December of the next year, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.*
b.	Redo the entries in steps (2), (3), and (4) assuming the company uses the direct write-off method.*
	*Refer to the Chart of Accounts for exact wording of account titles.

a. Journalize the entries to record the following:
1.	Record the adjusting entry at December 31, the end of the first fiscal year, to record the bad debt expense. The accounts receivable account has a balance of $800,000, and the contra asset account before adjustment has a debit balance of $600. Analysis of the receivables indicates uncollectible receivables of $18,000.
	Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2

2.	In March of the next year, the $350 owed by Fronk Co. on account is written off as uncollectible.
3.	In November of the next year, $200 of the Fronk Co. account is reinstated and payment of that amount is received.
4.	In December of the next year, $400 is received on the $600 owed by Dodger Co. and the remainder is written off as uncollectible.
	Refer to the Chart of Accounts for exact wording of account titles.

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ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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b. Redo the entries in steps (2), (3), and (4) assuming the company uses the direct write-off method. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8
9