LUS Kimmel Financial Accounting 7e Intro to Accounting for N

LUS Kimmel, Financial Accounting, 7e Intro to Accounting for Non-Majors 7e (ACC 185) dy & Practice Gradebeek ORION en Assignment BACK Exercise 8-4 The ledger of Wainwnight Company at the end of the current year shows Accounts Receivable $82,000; Credt Sales $856,000; and Sales Returns and Allowances $58,500. (Credit account tit ssa) are automatically indented when amount is entered. Do mot indent manually) ) lf Wainwright uses the direct write off method tKO unt for ueelectible accounts, jornate the abating etry at December 31, assuming Wainwright determines that piler$1,100 balance s uncollectible. (D) 2f Ale ance for Doubtful Accounts has a credit balance of $1,000 in the trial balancejournalize the adusting entry at Decembe 31, atu are expeded to be tsoomum g bed bad debts are expected to be 9% of accounts (e) 11 Allowance for Doubtful Accounts has a debit balance of $550 in the trial balance, sounalize the adjusting entry at December 31, assuming ts by Study tc) Question Attempts:0 of 3 used save MacBook Air 6 7 8 9 0 5

Solution

DR CR a Bad debt Expense 1100 Accounts Receivable 1100 b Bad debt Expense 8020 Allowance for Doubfull account 8020 Workings Account receivable 82000 11% uncollectable 9020 Baddebt Adjustment 9020-1000 8020 c Bad debt Expense 7930 Allowance for Doubfull account 7930 Workings Account receivable 82000 9% uncollectable 7380 Baddebt Adjustment 7380+550 7930