Question

Vermont Auto Parts, Inc., completed the following selected transactions during 2018: i (Click the icon to view the transactions.) Read the requirements. Requirement 1. Record the transactions in the journal and post to the Allowance for uncollectible accounts and Bad debt expense ledger accounts that have been opened for you. These accounts have beginning balances of $1,700 (cr.) and $0, respectively. Remember to update account balances but ignore posting references Begin by recording the transactions in the journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan 17: Sold inventory to Quincy Handler, $700 on account. Ignore cost of goods sold X More Info Journal Entry Debit Date Accounts Credit Sold inventory to Quincy Handler, $700, on account. Ignore cost of goods sold. Jan 17 Jan 17 Jun 29 Wrote off the Quincy Handler account as uncollectible after repeated efforts to collect from him. Received $225 from Quincy Handler, alo Aug 6 with a letter stating his intention to pay within 30 days. Reinstated his account in full. Received the balance due from Quincy Handler Sep 4 Made a compound entry to write off the following accounts as uncollectible: Brody Conrad, $350; Terry Monet, $250; and Sally Sommers, $300. Oct 31 Jun 29: Wrote off the Quincy Handler account as uncollectible after repeated efforts to collect from him. Based on an aging of accounts receivable, estimated uncollectible accounts as $3,700. Dec 31 Journal Entry Date Accounts Debit Credit Print Done 29 Jun Aug 6: Received $225 from Quincy Handler, 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.)

Answer 1

Vermont Auto Parts, Inc.
Journal entry
Date	Account	Debit	Credit	Calculation
17-Jan	Accounts Receivable	700
	Sales		700
29-Jun	Allowance for Uncollectible accounts	700
	Accounts Receivable		700
6-Aug	Accounts Receivable	700
	Allowance for Uncollectible accounts		700
6-Aug	Cash	225
	Accounts Receivable		225
4-Sep	Cash	475		=700-225
	Accounts Receivable		475
31-Oct	Allowance for Uncollectible accounts	900		=350+250+300
	Accounts Receivable		900
31-Dec	Bad Debt Expense	2,900		From T Accounts
	Allowance for Uncollectible accounts		2,900

Credit 1,700 Allowance for Uncollectible accounts Date Description Debit Beginning Balance 29-Jun Write off 700 6-Aug Reinstate 31-Oct Write off 900 31-Dec Bad Debt Expense 700 2,900 =3,700-1,700-700+700+900 Ending Balance 3,700 Given in question Debit Credit Bad Debt Expense Date Description Beginning Balance 31-Dec Bad Debt Expense 2,900 Ending Balance 2,900

Req 2	Vermont Auto Parts, Inc.
	Balance Sheet (Partial)
	December 31'
	Accounts Receivable	125,000
Less	Allowance for Uncollectible accounts	(3,700)
	Accounts Receivable, Net	121,300