Question

current Attempt in Progress On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,469, Ivanhoe Company estimates that 11% of its accounts receivable balance of $77,700 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Ivanhoe Company determined that B. Jared's account was uncollectible and wrote off $1,139. On June 12, 2022, Jared paid the amount previously written oft Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit occount titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To reinstate account previously written off)

Answer 1

Bad debt expense = Accounts receivables x % estimated as uncollectible + Existing debit balance in allowance for doubtful accounts

= 77,700 x 11% + 1,469

= $10,016

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2021	Bad debt expense	$10,016
	Allowance for doubtful accounts		$10,016
May 11, 2022	Allowance for doubtful accounts	$1,139
	Accounts receivable - B. Jared		$1,139
June 12, 2022	Accounts receivable - B. Jared	$1,139
	Allowance for doubtful accounts		$1,139
June 12, 2022	Cash	$1,139
	Accounts receivable - B. Jared		$1,139

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