Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 8-05A a-d At December 31, 2022, the trial balance of Oriole Company contained the following amounts before adjustment. Debit Credit Accounts Receivable $175,800 Allowance
Problem 8-05A a-d
At December 31, 2022, the trial balance of Oriole Company contained the following amounts before adjustment.
Debit | Credit | |||
---|---|---|---|---|
Accounts Receivable | $175,800 | |||
Allowance for Doubtful Accounts | $ 1,600 | |||
Sales Revenue | 827,000 |
(a) | Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $9,920 of accounts receivable will be uncollectible. |
(b) | Repeat part (a), assuming that instead of a credit balance there is a $1,600 debit balance in Allowance for Doubtful Accounts. |
(c) | During the next month, January 2023, a $1,950 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. |
(d) | Repeat part (c), assuming that Oriole Company uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. |
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
(a) | enter an account title for the adjusting entry to record bad debt expense | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry to record bad debt expense | enter a debit amount | enter a credit amount | |
(b) | enter an account title for the adjusting entry assuming option b | enter a debit amount | enter a credit amount |
enter an account title for the adjusting entry assuming option b | enter a debit amount | enter a credit amount | |
(c) | enter an account title to record the write-off | enter a debit amount | enter a credit amount |
enter an account title to record the write-off | enter a debit amount | enter a credit amount | |
(d) | enter an account title for the jounral entry assuming option d | enter a debit amount | enter a credit amount |
enter an account title for the jounral entry assuming option d | enter a debit amount | enter a credit amount |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started