Question
The following transactions were completed by The Spencer Gallery during the current fiscal year ended December 31: Mar. 15. Reinstated the account of Brad Atwell,
The following transactions were completed by The Spencer Gallery during the current fiscal year ended December 31:
Mar. 15. | Reinstated the account of Brad Atwell, which had been written off in the preceding year as uncollectible. Journalized the receipt of $2,035 cash in full payment of Brads account. |
May 20. | Wrote off the $11,660 balance owed by Glory Rigging Co., which is bankrupt. |
Aug. 13. | Received 35% of the $20,900 balance owed by Coastal Co., a bankrupt business, and wrote off the remainder as uncollectible. |
Sept. 2. | Reinstated the account of Lorie Kidd, which had been written off two years earlier as uncollectible. Recorded the receipt of $3,315 cash in full payment. |
Dec. 31. | Wrote off the following accounts as uncollectible (compound entry): Kimbro Co., $8,770; McHale Co., $2,605; Summit Furniture, $6,695; Wes Riggs, $1,895. |
Dec. 31. | Based on an analysis of the $1,030,400 of accounts receivable, it was estimated that $44,800 will be uncollectible. Journalized the adjusting entry. |
Required:
1. Record the January 1 credit balance of $42,700 in a T account (below) for Allowance for Doubtful Accounts.
2. a.Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Note: For the December 31 adjusting entry, assume the $1,030,400 balance in accounts receivable reflects the adjustments made during the year.
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