Question
The question I need help with is at the end but the information below is to help to get the answer for Dec 31: Based
The question I need help with is at the end but the information below is to help to get the answer for Dec 31: Based on the aging of accounts receivable, estimated uncollectible accounts as 3,800.
Jan 17: Sold inventory to
Otton Gomez,
$1,100
on account. Ignore cost of goods sold.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Jan | 17 | Accounts receivable - Otton Gomez | 1,100 |
|
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| Sales revenue |
| 1,100 |
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| |
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Jun 29: Wrote off the
Otton Gomez
account as uncollectible after repeated efforts to collect from him.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Jun | 29 | Allowance for uncollectible accounts | 1,100 |
|
|
| Accounts receivable - Otton Gomez |
| 1,100 |
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| |
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Aug 6: Received
$350
from
Otton Gomez,
along with a letter stating his intention to pay within 30 days. Reinstated his account in full.
Begin by preparing the entry to reinstate the account. (Do not record the receipt of cash, this will be recorded in the next entry.)
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Aug | 6 | Accounts receivable - Otton Gomez | 1,100 |
|
|
| Allowance for uncollectible accounts |
| 1,100 |
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| |
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Now prepare the entry for the receipt of
$350
from
Otton Gomez.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Aug | 6 | Cash | 350 |
|
|
| Accounts receivable - Otton Gomez |
| 350 |
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Sep 4: Received the balance due from
Otton Gomez.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Sep | 4 | Cash | 750 |
|
|
| Accounts receivable - Otton Gomez |
| 750 |
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| |
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Oct 31: Made a compound entry to write off the following accounts as uncollectible:
Brody Conrad,
$400;
Tom Marquet,
$200;
and
Susie Stein,
$700.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Oct | 31 | Allowance for uncollectible accounts | 1,300 |
|
|
| Accounts receivable - Brody Conrad |
| 400 |
| Accounts receivable - Tom Marquet |
| 200 | |
|
| Accounts receivable - Susie Stein |
| 700 |
Dec 31: Based on the aging of accounts receivable, estimated uncollectible accounts as
$3,800.
Journal Entry | ||||
Date | Accounts | Debit | Credit | |
Dec | 31 | Bad debt expense | ? |
|
|
| Allowance for uncollectible accounts |
| ? |
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What would the answer be for Dec 31 for the Bad debt expense and the Allowance for uncollectible accounts?
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