Ch 7 Solutions - Exercise 7-7 Requirement 1 Bad debt...

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Exercise 7-7 Requirement 1 Bad debt expense = $67,500 (1.5% x $4,500,000) Requirement 2 Allowance for uncollectible accounts Balance, beginning of year $42,000 Add: Bad debt expense for 2009 (1.5% x $4,500,000) 67,500 Less: End-of-year balance (40,000 ) Accounts receivable written off $69,500 Requirement 3 $69,500 — the amount of accounts receivable written off.
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Exercise 7-8 Requirement 1 To record the write-off of receivables. Allowance for uncollectible accounts . ........................... 21,000 Accounts receivable . ................................................... 21,000 To record the collection of a receivable previously written off. Accounts receivable . ....................................................... 1,200 Allowance for uncollectible accounts . ....................... 1,200 Cash . ............................................................................... 1,200 Accounts receivable . ................................................... 1,200 Allowance for uncollectible accounts:
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Ch 7 Solutions - Exercise 7-7 Requirement 1 Bad debt...

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