Question

*Exercise 8-5 On December 31, 2017, when its accounts receivable were s276,000 and its account Allowance for Doubtful Accounts had an unadjusted debit balance of $1,800, Cato Corp. estimated that $15,500 of its accounts receivable would become uncollectible, and it recorded the bad debts adjusting entry. On May 11, 2018, Cato determined that Fel Ya Cheng's account was uncollectible and wrote off $1,700. On November 12, 2018, Cheng paid the amount previously written off. Prepare the required journal entries to record each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) 2017 Date Account Titles and Explanation Debit Credit 2018 Date Account Titles and Explanation Debit Credit (To reinstate account previously written off) (To record amount collected) What is the carrying amount of the receivables on (1) December 31, 2017; (2) May 11, 2018; and (3) November 12, 2013, assuming that the total amount of accounts receivable of $276,000 is unchanged on each of these three dates except for any changes recorded above. Carrying amount December 31, 2017 S May 11, 2018 November 12, 2018 Question Attempts: 0 of 3 used

Answer 1

Part A

2017
Date	Account titles and explanation	Debit	Credit
Dec. 31	Bad Debt Expense (15500+1800)	17300
	Allowance for Doubtful Accounts		17300
2018
May 11	Allowance for Doubtful Accounts	1700
	Accounts Receivable–Fel Ya Cheng		1700
November 12	Accounts Receivable–Fel Ya Cheng	1700
	Allowance for Doubtful Accounts		1700
	(to reinstate account previously written off)
	Cash	1700
	Accounts Receivable–Fel Ya Cheng		1700
	(to record amount collected)

Part B

	Carrying amount
December 31, 2017 (276000-15500)	$260500
May 11, 2018 (260500-1700)	$258800
November 12, 2018	$258800