Question

A. Calculate the total estimated bad debts on the below information.

b. Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in above. Assume the unadjusted balance in Allowance for Doubtful Accounts is a $4,000 debit.

c. of the above accounts, $5,000 is determined to be specifically uncollectible. Prepare the journal entry to write off the uncollectible account.

d. the company collects $5,000 subsequently on a specific account that had previously been determined to be uncollectible in part (c). Prepare the journal entry(ies) necessary to

(1) restore the account and
(2) record the cash collection.

Answer 1

The answer is below;

Step-by-step explanation:

b. Allowance for Doubtful Accounts Dr.$4,000

Bad Debts Cr.$4,000

c. Bad Debt Expense Dr.$5,000

Account Receivable Cr.$5,000

d. 1)Account Receivable Dr.$5,000

Bad Debt Expense Cr.$5,000

2)Cash Dr.$5,000

Account Receivable Cr.$,5000