Question

The edge of Concord Corporation at the end of the current year shows Accounts Receivable 375.800: Credit Sales 818 100, and Sales Returns and Allowances $39.00 a Concord Corporation uses the direct write-off method to account for uncollectible accounts.journalize the adjusting entry at December 31, assuming Concord Corporation determines that Matisse's 5812 balance is uncollectible. b) If Allowance for Doubtful Accounts has a credit balance of $1.060 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 10% of accounts receivable. Id If Allowance for Doubtful Accounts has a debit balance of $530 in the trial balance. Journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. Credit account titles are automatically indented when amount is entered. Do not inden manual No. Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts

Answer 1

Journal Entries Post Credit Date Account Title and Explaination Debit Ref. Bad Debts Expense 812.00 a Accounts Receivable 812.00 (To record estimated uncollectible accounts under direct method) Bad Debts Expense ($75800 x 10% - $1060) 6,520.00 Allowance for Doubtful Accounts 6,520.00 (To record entry for esstimated uncollectible accounts) Bad Debts Expense ($75800 x 7% +530) S 5,836.00 C Allowance for Doubtful Accounts 5,836.00 (To record entry for esstimated uncollectible accounts)