ctice Problems for Exam 2 Help Exercise 711 Uncollectible ac

ctice Problems for Exam 2 Help Exercise 7-11 Uncollectible accounts; allowance method; balance sheet approach [LO7-5,7-6] Colorado Rocky Cookie Company offers credit terms allowance method is used to account for uncollectible accounts. Th $33,000 at the beginning of 2018 and $21,500 in was received in December from a customer whose account previously had been applying a percentage of 10% to accounts receivable at the end of the year. to its customers. At the end of 2018, accounts receivable totaled $630,000. The e allowance for uncollectible accounts had a credit balance of receivables were written off during the year as uncollectible. Also, $1,300 in cash written off. The company estimates bad debts by 47:45 Required: rnal entries to record the write-off of receivables, the collection of $1,300 for previously written off receivables, and the year-end adjusting entry for bad debt expense. 2. How would accounts receivable be shown in the 2018 year-end balance sheet? Complete this question by entering your answers in the tabs below Required 1 Required 2 Prepare journal entries to record the write-off of receivables, the collection of $1,300 for previously written off receivables, and the year-end adjusting entry for bad debt expense. (If no entry is required for a transaction/event, select \"No journal entry required in the first account field.) View transaction list Journal entry worksheet

Solution

Journal entry :

2) Balance sheet presentation :

Date	account & explanation	debit	credit
	Allowance for doubtful accounts	21500
	Account receivable		21500
	(To record amount write off)
	Account receivable	1300
	Allowance for doubtful accounts		1300
	(To record amount reinstated)
	Cash	1300
	Account receivable		1300
	(To record amount received)
	Bad debt expense (63000-12800)	50200
	Allowance for doubtful accounts		50200
	(To record adjusting entry)