question 1

question 2

At the end of 2020, Cullumber Co. has accounts receivable of $807,800 and an allowance for doubtful accounts of $67,600. On January 24, 2021. the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of 56,700. On March 4, 2021. Cullumber Co. receives payment of $6.700 in full from Megan Gray. Prepare the journal entries to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To reverse write-off) (To record collection from Gray) eTextbook and Media List of Accounts Sandhill Co. uses the percentage-of-receivables basis to record bad debt expense. It estimates that 1% of accounts receivable will become uncollectible. Accounts receivable are $607.000 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,470. Prepare the adjusting journal entry to record bad debt expense for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts If the allowance for doubtful accounts had a debit balance of $960 instead of a credit balance of $2,470, determine the amount to be reported for bad debt expense. Bad Debts Expense