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The trial balance of Ayayai Paints at December 31, 2014, includes the following: Debits Credits Accounts Receivable $85,000 Allowance for Doubtful Accounts 600 Sales
The trial balance of Ayayai Paints at December 31, 2014, includes the following: Debits Credits Accounts Receivable $85,000 Allowance for Doubtful Accounts 600 Sales (all on credit) $85,600 A. B. If Ayayai Paints uses the aging method and estimates that $2,200 of receivables will be uncollectible, prepare the adjusting entry. If Ayayai Paints estimates uncollectibles at 2.2% of accounts receivable and the allowance account had a $600 credit balance instead of a $600 debit balance, prepare the appropriate adjusting entry. Assume that on February 3, 2015, the specific account of George Bush with a balance of $316 is deemed uncollectible. Record the write-off. C. D. Assume that on May 4, 2015, George Bush pays the above balance in full. Record the appropriate entries. Date Account Titles and Explanation A Bad Debt Expense B. Allowance for Doubtful Accounts Bad Debt Expense Allowance for Doubtful Accounts Debit Credit
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