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Modern Machine Shop (MMS) Inc. manufactures special moulds that are used in the production of plastic toys. Below is MMS's accounts recelvable ledger from October
Modern Machine Shop (MMS) Inc. manufactures special moulds that are used in the production of plastic toys. Below is MMS's accounts recelvable ledger from October 1 to December 31 , current year: Additional information is as follows: a. MMS sold its special moulds at $500 each. b. All sales were on credit with terms, n/30. c. MMS's records included the following items and their balances as at September 30 , current year: Record the write off of uncollectible accounts. Note: Enter debits before credits. Record the collected amount due from Machinex. Note: Enter debits before credits. Record the reinstatement of accounts written off on October 8. Note: Enter debits before credits. Record the collection on accounts written off on October 8. Note: Enter debits before credits. 2. MMS uses the aging of accounts receivable method to determine the amount of recelvables that may not be collectible in the future Its estimated uncollectible rates are as follows: Determine the amount of receivables that may not be collectible in the future, and prepare the journal entry to record bad deb: expense on December 31. current year. (Hint. You may wish to keep track of accounts receivable in order to determine the age of these recelvables.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the bad debt expenses estimated for the period. Note: Enter debits before credits
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