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Journalize the following transactions using the direct write-off method: June 1, Kleen-Dyno purchased $5,000 of dinosaur shampoo. On November 15, after multiple attempts on our
Journalize the following transactions using the direct write-off method: June 1, Kleen-Dyno purchased $5,000 of dinosaur shampoo. On November 15, after multiple attempts on our part to collect the funds due, Kleen-Dyno has indicated it will never pay the bill. Date Account Name Debit Credit Dec 1, Kleen-Dyno decides that Terrance Co.'s dinosaur shampoo is the only shampoo that works for their Dinosaur Wash stations. The company decides to pay Terrance Co. for the old invoice so it can order more product. Terrance Co. reinstates the amount due. Date Account Name Dec 1, Record the payment from Kleen-Dyno. Date Debit Credit Account Name Debit Credit Assume Terrance Inc uses the Allowance Method to estimate Bad Debts. Using the Aging of Accounts Receivable method, journalize the estimate for bad debts. Assume the balance in the Allowance for Doubtful Accounts is zero. Accounts Receivable Aging January 20xx Customer Current Past Due 61-90 1-30 Days 31-60 Days 90+ Days Days ABC Co 3000 DEF Inc 10000 5000 GHI Ltd 500 2000 JKL Inc 500 2500 4700 10000 Total Due 11000 7500 6700 13000 Estimated % Uncollectible 1% 3% 10% 30% Date Account Name Debit Credit
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