Question
Instructions On December 31, Big day Coffee Company reports the following results for its calendar year Accounts Receivable..... $200,000 Debit Allowance for doubtful accounts.......$500 Credit
Instructions On December 31, Big day Coffee Company reports the following results for its calendar year
Accounts Receivable..... $200,000
Debit Allowance for doubtful accounts.......$500 Credit
a) Using the allowance method, prepare the adjusting journal entry to record bad debts expense assuming uncollectible amounts are estimated to be 5% of year-end accounts receivable.
b)On July 1st Big Day Coffee Company concludes that a customers $600 receivable is uncollectible and that the account should be written off. What is the entry to write off the customers account using the allowance method?
General Journal
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