Question

At December 31, 2022, the trial balance of Blue Spruce Corp.contained the following amounts before adjustment. Debit Credit Accounts Receivable $180,300 Allowance for Doubtful Accounts $ 1.460 Sales Revenue 855,400 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $9.260 of accounts receivable will be uncollectible. (b) Repeat part(a), assuming that instead of a credit balance there is a $1.460 debit balance in Allowance for Doubtful Accounts. (d) During the next month, January 2023, a $2.040 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Blue Spruce Corp, uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually)

Answer 1

Openints Balance in for doubtful Allowance Accounts on $180 $1460 $9260 Closing Balance estimated 7800 a Bad debt expenses to be created. 3 Bad debt Expenses Allowances for doubtful o Wo Accounts $7800 lino o ooo liha B 7800 ① of 1460 is also a debit balance means, excess has been written off. Bad debt Expenses $10720 Allowances for doubtful Account $10720 Jan 2023 Allowance for doubtful Accounts $ 2040 Account Receivables $2040 I under Direct write off method Bad debst Account Expenses Revivables $2040 $2040