a. Entry under the write-off method | ||
Bad Debt Expense | $103,100 | |
Accounts receivable - Kim Abel | $24,300 | |
Accounts receivable - Lee Drake | $31,195 | |
Accounts receivable - Jenny Green | $29,715 | |
Accounts receivable - Mike Lamb | $17,890 | |
b. Write-off entry and Year-end adjustment entry under the Allowance method | ||
Allowance for Doubtful Accounts | $103,100 | |
Accounts receivable - Kim Abel | $24,300 | |
Accounts receivable - Lee Drake | $31,195 | |
Accounts receivable - Jenny Green | $29,715 | |
Accounts receivable - Mike Lamb | $17,890 | |
Bad Debt Expense [Refer working note 1] | $121,300 | |
Allowance for Doubtful Accounts | $121,300 | |
c. How much higher (lower) would Seaforth International’s 2016 net income have been under the allowance method than under the direct write-off method? | ||
Lower |
$18,200 [Refer working note - 2] |
|
Reason - Higher bad debt expense is recorded under the allowance method |
.
.
Working note 1 - Computation of the amount of bad debt expense to be recorded at the year-end | ||||
Aging Class (Number of Days Past Due) |
Receivables Balance on December 31 (a) |
Estimated Percent of Uncollectible Accounts (b) |
Amount Uncollectible (a x b) |
|
0–30 days | $735,000 | 1% | $7,350 | |
31–60 days | $290,000 | 2% | $5,800 | |
61–90 days | $111,000 | 15% | $16,650 | |
91–120 days | $70,000 | 30% | $21,000 | |
More than 120 days | $94,000 | 60% | $56,400 | |
Total amount uncollectible = Balance in Allowance for Doubtful account after Adjustment (a) | $107,200 | |||
Balance in Allowance for Doubtful account Before Adjustment [Beginning balance - Write-off amount = $89,000 - $103,100] (b) | $14,100 | Debit balance | ||
Adjustment amount = Bad debt expense (a + b) | $121,300 |
.
.
Working note 2 | |
Bad debt expense recorded under Allowance method for (a) | $121,300 |
Bad debt expense recorded under Direct write-off method (b) | $103,100 |
Excess bad debt expense recorded under allowance method (a - b) | $18,200 |
need help with B and C Calculator Entries for Bad Debt Expense Under the Direct Write-off...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $735,000 1 %...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Kim Abel Amount $24,200 Lee Drake 32,850 Jenny Green 29,900 Mike Lamb Total 17,900 $104,850 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days 31-60 days 61-90...
all together ; entries for bad debt expense and under the
direct write off and allowance methods
UUTIW ALUWIPNC ACCT I BL. Cengage CengageNOWV2 Online teaching and Ch 9-3 Exercises & Problems Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $21,550 33,925 Lee Drake Jenny Green Mike Lamb 27,565 19,460 $102,500 Total The company prepared the...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $21,550 Lee Drake 33,925 Jenny Green 27,565 Mike Lamb 19,460 Total $102,500 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $715,000 1% 31-60...
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,300 Lee Drake 31,195 29,715 Jenny Green Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $735,000 31-60 days 290,000 61-90 days 111,000 91-120 days 70,000 More than 120 days 94,000...
Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts Journal Final Question Instructions Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31 Customer Amount Kim Abel $24,300 Lee Drake 30,600 Jenny Green 29,900 Mike Lamb 17,900 Total $102,700 Instructions Chart of Accounts Journal Final Question Instructions The company prepared the following aging schedule for its accounts receivable on December 31 Aging Class (Number of Days Past...
would like to know the correct answers for the boxes with a
red x by them.
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,200 Lee Drake 32,850 Jenny Green 29,900 Mike Lamb 17,900 Total $104,850 ompany prepared the following aging schedule for its accounts receivable on December 31: The Receivables Aging Class (Number Balance Estimated...
Seaforth International wrote off the following accounts
receivable as uncollectible for the year ending December 31:
The company prepared the following aging schedule for its
accounts receivable on December 31:
Journalize the write-offs under the direct write-off method.
Journalize the write-offs and the year-end adjusting entry under
the allowance method, assuming that the allowance account had a
beginning balance of $89,000 and the company uses the analysis of
receivables method.
How much higher (lower) would Seaforth International’s net
income have...
Entries for bad debt expense under the direct write off and allowance methods Dato Accounts Journal Final Question Instructions The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31, 2016 June Aug Oer Dec. 8. Wrote off account of Kathy Quantel 58,440. Received $1,000 as partial payment on the 512 500 account of Rosalie Oakes remaining balance as uncollectible Received the 56.440 from Kathy Quantel whose account had be Reinstated the...
Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $24,500 Lee Drake 31,000 Jenny Green 29,700 Mike Lamb 17,900 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $740,000 1% 31–60 days 300,000 2 61–90 days 110,000 15 91–120 days 70,000 30 More...