Question
Pittman Company records uncollectible accounts expense as they occur. Selected transactions for 20X1 and 20X2 are described below. The accounts involved in these transactions are
Pittman Company records uncollectible accounts expense as they occur. Selected transactions for 20X1 and 20X2 are described below. The accounts involved in these transactions are Notes Receivable, Accounts Receivable, and Uncollectible Accounts Expense.
DATE | TRANSACTIONS | ||
20X1 | |||
Feb. | 7 | The $650 account receivable of Marie Cousins is determined to be uncollectible and is to be written off. | |
May | 16 | Because of the death of Heidi Martin, her account receivable of $1,050 is considered uncollectible and is to be written off. | |
July | 2 | Received $325 from Marie Cousins in partial payment of her account, which had been written off on February 7. The cash obtained has already been recorded in the cash receipts journal. There is doubt that the balance of Cousins' account will be collected. | |
July | 29 | Received $325 from Marie Cousins to complete payment of her account, which had been written off on February 7. The cash obtained has already been recorded in the cash receipts journal. | |
Aug. | 18 | The $374 account receivable of Neal Wilder is determined to be uncollectible and is to be written off. | |
20X2 | |||
Sept. | 28 | Received $525 from the estate of Heidi Martin as part of the settlement of affairs. This amount is applicable to the account receivable written off on May 16, 20X1. The cash obtained has already been recorded in the cash receipts journal. |
Required: Prepare journal entries to record the above transactions.
The $650 account receivable of Marie Cousins is determined to be uncollectible and is to be written off.
Because of the death of Heidi Martin, her account receivable of $1,050 is considered uncollectible and is to be written off.
Record entry to reverse part of entry dated February 7, writing off this account, which was collected today.
Record entry to reverse balance of entry dated February 7, writing off this account, which was collected in full today.
The $374 account receivable of Neal Wilder is determined to be uncollectible and is to be written off.
Record entry to restore part of account charged off May 16, 20X1, which was collected from estate of Heidi Martin today. Analyze: Based on the above transactions, what net uncollectible accounts expense was recorded for the year 20X1?
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