Hinson 8-5 Accounting for Uncollectible Accounts

Hinson 8-5 Accounting for Uncollectible Accounts - Student...

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Student Name: Class: Problem 07-03 RAINTREE COSMETIC COMPANY General Journal Account Debit Credit Requirement 1: To record accounts receivable written off during the year 2006: Allowance for uncollectible accounts 35,000 Accounts receivable 35,000 To record collection of account receivable previously written off: Accounts receivable 3,000 Allowance for uncollectible accounts 3,000 Cash 3,000 Accounts receivable 3,000 Requirement 2(a): Account Debit Credit Bad debt expense 52,500 Allowance for uncollectible accounts 52,500 Requirement 2(b): Accounts receivable analysis: Beginning balance $462,000 Add: Credit sales 1,750,000 Less: Write-offs 35,000 Less: Cash collections 1,830,000 Ending balance $347,000 Required allowance for uncollectible $34,700 accounts Correct! Allowance for uncollectible accounts analysis: Beginning balance $30,000 Add: Collection of receivable 3,000 previously written off Less: Write-offs 35,000 Balance before adjustments (2,000) Required allowance 34,700 Bad debt expense adjustment
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Hinson 8-5 Accounting for Uncollectible Accounts - Student...

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