Sloan Company, which uses an Allowance for Doubtful Accounts, had the following transactions in 2021 and 2022: 2021 Dec. 31 Recorded Bad Debt Expense
Sloan Company, which uses an Allowance for Doubtful Accounts, had the following transactions in 2021 and 2022: 2021 Dec. 31 Recorded Bad Debt Expense of $15,500 2022 Apr. 1 Wrote off J. Salazar account of $3,500 as uncollectible. Jun. 4 Wrote off T. Savvy account of $4,000 as uncollectible. Aug, 10 Recovered $1,500 from T Savvy. Required a Journalize the transactions using the income statement approach to estimate bad debts. b. Journalize how Sloan Company would record the T Savvy bad debt situation if the direct write-off method had been used. Assume the bad debt was recovered on August 10, 2023.
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