Question
Question 5 Accounts receivable transactions are provided below for J Cullumber Co. Dec. 31, 2020 The company estimated that 5% of its accounts receivable would
Question 5 Accounts receivable transactions are provided below for J Cullumber Co. Dec. 31, 2020 The company estimated that 5% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $693,000 and $2,600 (debit), respectively. Mar. 5, 2021 The company determined that R. Mirzas $3,900 account and D. Wights $7,500 account were uncollectible. The companys accounts receivable were $730,400 before the accounts were written off. June 6, 2021 Wight paid the amount that had been written off on March 5. The companys accounts receivable were $681,600 prior to recording the cash receipt for Wight. Prepare the journal entries on December 31, 2020, March 5, 2021, and June 6, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record estimate of uncollectible accounts.) (To record write off of accounts receivable.) (To record write off of accounts receivable.) (To reverse write off.) (Collection of account that was previously written off.) Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry. Allowance for Doubtful Accounts Date Explanation Ref. Debit Credit Balance Dec. 31, 2020 Balance unadjusted Debit Dec. 31, 2020 AJE Mar. 5, 2021 Write off Mirza Mar. 5, 2021 Write off Wight June 6, 2021 Reverse write off Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2021. Carrying amount before recovery $ Carrying amount after recovery $
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