- X More Info 2018 Dec. 31 Estimated that bad debts expense for the year was 3% of credit sales of $500,000 and recorded that amount as expense. The company uses the allowance method. 31 Made the closing entry for bad debts expense. 2019 Jan. 17 Sold merchandise inventory to Marty White, $900, on account. Ignore Cost of Goods Sold Jun. 29 Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Aug. 6 Received $900 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full and recorded the cash receipt. Dec. 31 Made a compound entry to write off the following accounts as uncollectible: Barry Krisp, $1,800; Marie Cuty, $1,000; and Raymond Jones, $300. 31 Estimated that bad debts expense for the year was 3% on credit sales of $450,000 and recorded the expense. 31 Made the closing entry for bad debts expense. Print Dong) Dec. 31: Estimated that bad debts expense for the year was 3% of credit sales of $500,000 and recorde Date Accounts and Explanation Debit Credit 2018 Dec. 31 Bad Debts Expense (Adj.) Allowance for Bad Debts 15,000 15,000 Debit Credit Dec. 31: Made the closing entry for bad debts expense. Date Accounts and Explanation 2018 Dec. 31 Income Summary (Clos.) Bad Debts Expense 15,000 15,000 Now record the 2019 transactions in the general journal. Jan. 17: Sold inventory to Marty White, $900, on account. Ignore Cost of Goods Sold. Date Accounts and Explanation Debit Credit 2019 Jan. 17 Accounts Receivable Marty White 900 Sales Revenue 900 hun 20. roto offer bitola Jun. 29: Wrote off Marty White's account as uncollectible after repeated efforts to collect from him. Date Accounts and Explanation Debit Credit 2019 Jun. 29 Allowance for Bad Debts 900 Accounts Receivable-Marty White 900 Aug. 6: Received $900 from Marty White, along with a letter apologizing for being so late. Reinstated White's account in full Start by recording the entry to reinstate White's account. Date Accounts and Explanation Debit Credit 2019 Aug. 6 900 Accounts ReceivableMarty White Allowance for Bad Debts 900 Debit Credit Now record the $900 received from Marty White. Date Accounts and Explanation 2019 Aug. 6 Cash Accounts Receivable-Marty White 900 Dec. 31: Made a compound entry to write off the following accounts as uncollectible: Barry Krisp. $1,800; Marie Cuty, $1,000; an Date Accounts and Explanation Debit Credit 2019 - X Requirements o ba 1. The T-accounts for Allowance for Bad Debts and Bad Debts Expense have been opened for you, assuming the accounts begin with a zero balance. Record the transactions in the general journal (omit explanations), and post to the two T-accounts. Assume the December 31, 2019, balance of Accounts Receivable is $138,000. Show how net accounts receivable would be reported on the balance sheet at that date. Expe 5000 Print Done