pter 8 - Assignment 3 eBook Show Me How Calculator Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question Instructions The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8 Aug 14 Oct. 16 Wrote off account of Kathy Quantel, 58,450. Received $3,000 as partial payment on the $12,510 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible Received the $8,450 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan Greg Gagne Dec. 31 $4,560 3,560 7,165 Amber Kisko 2 975 Shannon Poole Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question Instructions Wade Dolan $4,560 3,560 7,165 Greg Gagne Amber Kisko Shannon Poole Niki Spence If necessary, record the year-end adjusting entry for uncollectible accounts. 2,975 6,585 31 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 1% $320,400 0-30 days ntries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question Instructions Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $320,400 1% 31-60 days 106,000 3 61-90 days 23,500 10 91-120 days 17,500 33 More than 120 days 43,500 73 Total receivables $510,900 Required: Instructions Chan Accounts Journal Final Question Instructions More than 120 days 43,500 73 Total receivables $510,900 Required: A. Journalize the transactions under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,000 and the company uses the analysis of receivables method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. C. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? UUM Instructions Journal Shaded cells have feedback A. Journalize the transactions under the direct write-off method. I no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. How does grading work? PAGE 1 JOURNAL Score: 186/186 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 8,450.00 ! 2 8,450.00 1 DATE DESCRIPTION Jun 8 Bad Debt Expense Accounts Receivable Kathy Quantel Aug 14 Cash Bad Debt Expense Accounts Receivable-Rosalie Oakes 3 3,000.00 1 9,510.00 + I 5 12,510.00 + 6 Oct. 16 Accounts Receivable-Kathy Quantel 8,450.00 t 7 Bad Debt Expense 8,450.00 t Oct. 16 Cash 8,450.00 1 9 8,450.00 1 10 Dec. 31 Accounts Receivable-Kathy Quantel Bad Debt Expense Accounts Receivable-Wade Dolan 24,845.00 4560.00 Check My Work 1 more Check My Work uses remaining All work saved. Email Instructor Instructions Journal Shaded cells have feedback. 11 Accounts Receivable-Wade Dolan 4,560,00 + 3,560.00 + Accounts Receivable-Greg Gagne Accounts Receivable-Amber Kisko 13 7165.00 1 14 Accounts Receivable Shannon Poole 2,975.00 1 5 Accounts Receivable-Niki Spence 6,585.00 Points: 35/35 Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $35,000 and the company uses the analysis of Deivables method. W no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. w does grading work? PAGE 1 JOURNAL Score: 207/211 ACCOUNTING EQUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 8,450.00 1 DATE DESCRIPTION Jun. 8' Allowance for Doubtful Accounts Accounts Receivable-Kathy Quantel Aug. 14 Cash Allowance for Doubtful Accounts 8,450.00 + 3,000.00 t 9.510.00 t Work 1 more Check My Work uses remaining. mal Shaded cells have feedback. X Aug. 14 cash 300000 9,510.00 Allowance for Doubtful Accounts 1 Accounts Receivable-Rosalie Oakes 12,510.00 1 8,450.00 1 8,450,00 8,450.00 8,450.00 . 24,845.00 1 4,560.00 ! Oct. 16 Accounts Receivable-Kathy Quantel Allowance for Doubtful Accounts Oct. 16 Cash Accounts Receivable Kathy Quantel Dec. 31' Allowance for Doubtful Accounts Accounts Receivable-Wade Dolan Accounts Receivable-Greg Gagne Accounts Receivable-Amber Kisko Accounts Receivable-Shannon Poole Accounts Receivable-Niki Spence Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts 3,560,00 . 7,165.00 + 2,975.00 + I 6,585,00 ! 46,264,00 1 46,264,00 1 Points: 39.24/40 Feedback Work 1 more Check My Work uses remaining. All wor Email Inst Instructions Chart of Accounts Journal Final Question D Instructions Journal Shaded cells have fee Final Question Shaded cells have A til C. How much higher (lower) would Rustic Tables 2016 net income have been under the direct write-of method than under the allowance method? Higher by $15,335 X Points: 1/2 Feedback Check My Work 1 2 C. Compare the bad debt expense account balance for both methods