Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all parts (a,b,c) if you dont care to. Thanks! eBook Show Me How Print Item Entries for bad debt expense under the direct

Please answer all parts (a,b,c) if you dont care to. Thanks!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
eBook Show Me How Print Item 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, $8,440. Aug. 14. Received $3,000 as partial payment on the $12,500 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $8,440 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 $4,600 Greg Gagne 3,600 Amber Kisko 7,150 4 Shannon Poole 2,975 Niki Spence 6,630 Dec. 31. If necessary, journalize the year-end adjusting entry for uncollectible accounts. If no entry is required, select "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. a. Journalize the transactions under the direct write-off method. Date Account Debit Credit June 8 Aug. 14 Aug. 14 Oct. 16 Oct. 16 Dec. 31 000 00 00000000 00 000 00000000 Dec. 31 b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $36,000 at the beginning of the year and the company uses the analysis of receivables method, Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts $320,000 1% 110,000 3 24,000 10 18,000 33 43,000 75 $515,000 0-30 days 31-60 days 61-90 days 91-120 days More than 120 days Total receivables Date June 8 Aug. 14 Oct. 10 Account Debit 00 Credit 000 00 00 00 0000 000000 Oct. 16 Oct. 16 Dec. 31 Dec. 31 4 c. How much higher (lower) would Rustic Tables net income have been under the direct write-off method than under the allowance method? by s

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood

10th Canadian edition Volume 1

978-0134213101, 134213106, 133855376, 978-0133855371

More Books

Students also viewed these Accounting questions