Question

Show in T-Accounts and Journal. These entries related to uncollectible accounts

Entries related to uncollectible accounts Chart of Accounts T Accounts Journal Final Questions Instructions The following transactions were completed by Daws Company during the current fiscal year ended December 31: Jan. 29 Received 35% of the $9,000 balance owed by Kovar Co., a bankrupt business, and wrote of the remainder as uncollectible Apr. 18 Reinstated the account of Spencer Clark, which had been written off in the preceding year as uncollectible Journalized the receipt of $4.000 cash in full payment of Clark's account. Wrote off the $11,850 balance owed by Iron Horse Co., which has no assets Aug. 9 Nov. 71 Reinstated the account of Vinyl Co., which had been written off in the preceding year as uncollectible Journalized the receipt of $7.000 cash in full payment of the account Wrote off the following accounts as uncollectible (one entry) Beth Connelly Inc. $12.100 DeVine Co. 58.110 Moser Distributors. $21.950: Oceanic Optics 510 000 Dec. 31

Answer 1

Tamb.eft 5850 Answer 2. (6) Allowance for Doubtfy) Debts Iogte | Pauticulars AME($) Oate particulars Jana To kovar Co. Jan I By Balance old Aug. 9 To Tron Howe Co. Apv. 18 By Spencer Clark 11850 Nou7 12100 Mo By vinyl Co. Dec.31 To Beth Connelly Inc. Dec. 9) To Devine co. 8110 Dec. 31 To moster Distributous 21950 Delts Dell To oceanic optics [10000 per. 31 By Byd Expense Dec.) To Balance of 60000 (Balqoving $4200 4000 7000 6466 Figure) 1129860 129 860 Toate particulars | Pec.31 To Allowance for Doubtful Debto Bad Debts Expense Amb:6) Dyte pq oljylars 64660 pec:3) By Balance clt Al Amtal 64660 164660 ECCO 2.(4) Defit (6) Gelio 3150 5850 9000 OY 1 toy rogl Entjes Date Ppitj cylaur Jan. 29 | Gsh Ale Ov. Allowance for Doubtful Debts - To Kovaly Co. Al (Being Partly cash and balance transferred foronaccount receivable) Apr 18 Spencer Clark Alc- On a To Allowance for Doubtful Debto (Being written off account receivable reinstated) Apr. 18 cash Al- - on To spencer clouk Ale (Being cash received from written off account receivable gooo 4000 4000 Gooo

7000 7000 Aug 1 Allowance for Doubtful pelto Alta Do 11850 To Iron Horse Co. Ale (Being accounts recewable write off) - On 7000 No.7 Vinyl Co. Alc " To Allowance for Doubtful Delts Ale Being reinstated the writhm off accounts receivable account) Nov.7 I Cash Ale Dy 7000 To vingyleo. Ale (Being cash received from Vinayl Co. which is earlier written Off) Dec. 31 Allowance for Doubtful Debto Alo LDS2160 To Berth Connelly fne. To Devine a To monster Distribytous To oceanic optics, (Being accounts receivable written off) | Dec.31 | Bad Debtv Expense Ale - Dn [69660 To Allowance for Doubtfy / Debts Ale (Being adjustment entry posuel) - 12.100 21930 600 64660 159670 159670 3. Expected Net Reglinulle Value of Accounto Receivable Expected Net Realizable Value of Balance in Account Accounts Receivable as Receivable as of of december 31 1. Derember 31 = $(1450000 : 1390000 tºllech | - Allowance of Doubtful Detts a of Dec. 31 - 60000)

4. Assuming provision for Uncolleckble Accounts Receivable is 0.5% of sales of $ 13200,000, then A. Bad Debt Expense for the year Bad Debt Expense - Sales x Plovisjon for Doybt fyl Debto = $ (1,32,60000 x 0,5%) = $ 66000 B. Balance in Accounts Receivable Allowance for Doubtful Detto [Pogle Particulars AMEA) Ogle Particulars Amirst Jan. 29 To kovov.co. [5850 Son.) By Balance 6/1 54200 Aw To Iron Horse co. 11850 Apr. 18 By Spencer clark 9000 Dec. 9) To Beth Connelly anc. 12100 Nov7 by vinyl co 7000 Dec.3) To Devine co 8110 Dec ? To monster Distributor 21950 | Dec 3/ To oceanic optics 10000 pe=-31 By Byd Debts Expore 66000 Dec.31 To Balance all 161340) [13/200 13/200 Accounts Receivable as of c. Expected Net Realizable Value of December 31. Expected Net Realizable Value of Accounts Receivable 95 of December 31. Bylnou in Accounts Receivable qs of December 31 Vocollect 1 for Doubt Debts as of Dec. 3 a = f $ (1490000 - 61340) 1388660