Question

The Accounts Receivable balance for Southside, Inc. at December 31, 2017, was $29,000. During 2018, Southside earned revenue of $460,000 on account and collected $330,000 on account. Southside wrote off $6,100 receivables as uncollectible. Industry experience suggests that uncollectible accounts will amount to 2% of accounts receivable. Read the requirements. Requirement 1. Assume Southside had an unadjusted $2,400 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Southside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit i Requirements Dec. 31 1. Assume Southside had an unadjusted $2,400 credit balance in Allowance for Bad Debts at December 31, 2018. Journalize Southside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. Assume Southside had an unadjusted $1,500 debit balance in Allowance for Bad Debts at December 31, 2018. Journalize Southside's December 31, 2018, adjustment to record bad debts expense using the percent-of-receivables method. 2. Print Print Done Done Choose from any list or enter any number in the input fields and then click Check Answer. part remaining Clear All Check Answer

Answer 1

a) Journal entry

Date	account and explanation	Debit	Credit
Dec 31	Bad debt expense (152900*2%-2400)	658
	Allowance for doubtful accounts		658

b) Journal entry

Date	account and explanation	Debit	Credit
Dec 31	Bad debt expense (152900*2%+1500)	4558
	Allowance for doubtful accounts		4558