help needed pleaseee need help out with the journal and the final question
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8 Aug Oct Wrote off account of Kathy Quantel, $8,390. 14. Received $2,985 as partial payment on the $12,455 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. 16 Received the $8,390 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Wrote of the following accounts as uncollectible (record as one journal entry): Wade Dolan Greg Gagne Amber Kisko Dec. 31 $4,640 3,610 7,195 Shannon Poole 2,990 6,580 Niki Spence If necessary, record the year-end adjusting entry for uncollectible accounts. 31 Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $321,700 1% 31-60 days 108,400 4 61-90 days 25,000 11 91-120 days 17,300 34 More than 120 days 43,100 79 Total receivables $515,500 Required: A. Journalize the transactions under the direct write-off method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,400 and the company uses the analysis of receivables method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. C. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? CHART OF ACCOUNTS Rustic Tables Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 111 Petty Cash 121 Accounts Receivable-Wade Dolan 122 Accounts Receivable-Greg Gagne 123 Accounts Receivable-Amber Kisko 124 Accounts Receivable-Rosalie Oakes 125 Accounts Receivable-Shannon Poole 126 Accounts Receivable-Kathy Quantel 127 Accounts Receivable-Niki Spence 129 Allowance for Doubtful Accounts EXPENSES 510 Cost of Merchandise Sold 520 Sales salaries Expense 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 125 Accounts Receivable-Shannon Poole 126 Accounts Receivable-Kathy Quantel 127 Accounts Receivable-Niki Spence 129 Allowance for Doubtful Accounts 131 Interest Receivable 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 521 Advertising Expense 522 Depreciation Expense-Store Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 530 Office Salaries Expense 531 Rent Expense 532 Depreciation Expense-Office Equipment 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Shot and Over 538 Bad Debt Expense 539 Miscellaneous Expense 181 Land 191 Store Equipment 192 Accumulated Depreciation Store Equipment 193 Office Equipment 194 Accumulated Depreciation Office Equipment 710 Interest Expense LIABILITIES LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends A. Journalize the transactions under the direct write-off method. I no entry is required, simply skip to the next fransaction. Refer to the Chart of Accounts for exact wording of account titles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTI DERIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 9 10 11 14 B. Joumalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,400 and the company uses the analysis of receivables method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF: DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 7 10 11 12 C. How much higher (lower) would Rustic Tables 2016 net income have been under the direct write-off method than under the allowance method
