Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help to find the last values bad debt expense Eitries for bad debt expense under the direct write-off and allowance method The following
i need help to find the last values
Eitries for bad debt expense under the direct write-off and allowance method The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31 : June 8. Wrote off account of Kathy Quantel, $4,160. Aus. 14. Received $2,950 as partial sayment on the $7,450 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $4,160 from Kathy Quantel, whose account had been written off on June 8 . Reinstated the account and recorded the caih receipt Dec: 31. Wrote off the following accounts as ancollectible (record as one joumal entry): Dec, 31. If necessary, Journalize the year-end adjusting entry for uncollectible accounts. If no entry is required, sqbect "No Entry Required" and leave the amount boxes blank. If an amount box dons not require an entry; leave it binnk. II no entry is required, select 'No entry" and leave the amount boxes blank. If an amount box does not require an entry, leare it blank. a. Foulnalize the transections under the direct write-off method. June 8 Allowance for Doubtful Accounts Accounts Receivable-Kathy Quantel Aug. 14 Cash Allowance for Doubtful Accounts Accounts Receivable-Rosalie Oakes v Oct. 16 Accounts Receivable-Kathy Quantel Allowance for Doubtful Accounts 4,160 Oct. 16 Cash Accounts Receivable-Kathy Quantel Dec. 31AccountsRecelvable-WadeDolanAllowanceforDoubtfulAccounts Accounts Receivable-Greg Gagne Accounts Receivable-Amber Kisko v Accounts Receivable-Shannon Poole Accounts Receivable-Niki Spence Dec. 31 Bad Debt Expense = Allowance for Doubtful Accounts 67 * Check My Work Remember that under the direct write-off method, Bad Debt Expense is not recorded until the customer's account is dete Under the allowance method once a customer atcount is identified as uncollectible, it is written off against the allowance-i c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowan by $ X bad debt expense
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