Question

*Exercise 9-05 a-c The ledger of Sheffield Company at the end of the current year shows Accounts Receivable $ 148,000, Sales Revenue $841,000, and Sales Returns and Allowances $30,000. Journalize the following independent situations. If Sheffield uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Sheffield determines that L. Dole's $2,500 balance is uncollectible. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 If Allowance for Doubtful Accounts has a credit balance of $2,200 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 11% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 If Allowance for Doubtful Accounts has a debit balance of $260 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31

Answer 1

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JOURNAL ENTRY I credit Debit $2500 Date Account Title and explanation Dec 31 | Bad debt Expense Ac - To Accounts Receivable Del All $2500 $14080 $14080 Bad Debt Expense All Dr DEC-31 To Allowance for Doubtful Accounts and ($148000 x 11%) - $2200 Bad debet Expense Dec 31 al a I To Allowance for Docktful Accounts Ale ($148.000 x 84.)+$260 $12100 1$12100