Question
ntries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Rustic Tables Company
ntries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
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, $9,530. Aug. 14. Received $6,770 as partial payment on the $17,060 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $9,530 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan $2,760 Greg Gagne 1,720 Amber Kisko 6,580 Shannon Poole 3,810 Niki Spence 1,050
Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es).
Question Content Area
a. Journalize the transactions under the direct write-off method.
b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $28,590 on January 1 and the company uses the analysis of receivables method. c. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method?
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
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, $9,530. Aug. 14. Received $6,770 as partial payment on the $17,060 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $9,530 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan $2,760 Greg Gagne 1,720 Amber Kisko 6,580 Shannon Poole 3,810 Niki Spence 1,050
Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). a. Journalize the transactions under the direct write-off method. For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). a. Mnuirnalise the traneartione under the direct writa-aff method. b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $28,590 on January 1 and the c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? June 8. Wrote off account of Kathy Quantel, 59,530. Aug. 14. Received $6,770 as partial payment on the $17,060 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $9,530 from Kathy Quantel, whose account had been written off on June 8 . Reinstated the account and recorded the cash receipt Dec, 31 Wrote off the following accounts as uncollectible (record as one journal entry): Dec. 31 If necessary, record the vear-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable: For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es). For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es) b. Joumalize the transactions under the allowance method, assuming that the allowance account had a beginning credit balance of $28,590 on January 1 and the c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the aliowance method? by
ntries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
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, $9,530. |
Aug. 14. | Received $6,770 as partial payment on the $17,060 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. |
Oct. 16. | Received the $9,530 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. |
Dec. 31 | Wrote off the following accounts as uncollectible (record as one journal entry): |
Wade Dolan | $2,760 |
Greg Gagne | 1,720 |
Amber Kisko | 6,580 |
Shannon Poole | 3,810 |
Niki Spence | 1,050 |
Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
For those amount boxes in which no entry is required, leave the box blank. If an account is not required, select "No entry" from the dropdown box(es).
Question Content Area
a. Journalize the transactions under the direct write-off method.
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
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, $9,530. |
Aug. 14. | Received $6,770 as partial payment on the $17,060 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. |
Oct. 16. | Received the $9,530 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. |
Dec. 31 | Wrote off the following accounts as uncollectible (record as one journal entry): |
Wade Dolan | $2,760 |
Greg Gagne | 1,720 |
Amber Kisko | 6,580 |
Shannon Poole | 3,810 |
Niki Spence | 1,050 |
Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
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