Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need answers for b) bad debt expense and allowance for doubtful accounts and c) Entries for Bad Debt Expense under the Direct Write-Off and
i need answers for b) bad debt expense and allowance for doubtful accounts and c)
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: Customer Amount Shawn Brooke $13,900 13,000 Eve Denton Art Malloy 17.800 Cassie Yost 3,400 Total $48,100 a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank. Bad Debt Expense 48,100 Accounts Receivable-Shawn Brooke 13,900 Accounts Receivable-Eve Denton 13,000 17,800 Accounts Receivable-Art Malloy Accounts Receivable-Cassie Yost 3,400 Feedback b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded $3,870,000 of credit sales during the year. Based on past history and industry averages, 1 1/2% of credit sales are expected to be uncollectible. If an amount box does not require an entry, leave it blank. Write-off Allowance for Doubtful Accounts 48,100 Accounts Receivable-Shawn Brooke 13,900 Accounts Receivable-Eve Denton 13,000 Accounts Receivable-Art Malloy 17,800 Il doill Accounts Receivable-Cassie Yost 3,400 Adjustment Bad Debt Expense Allowance for Doubtful Accounts Feedback C. How much higher (lower) would Casebolt Company's net income have been under the direct write-off method than under the allowance method? Higher by $Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started