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Unformatted text preview: Activity #7 1. The allowance for doubtful accounts has a $500 credit balance. The company's controller wants this account to have a $5000 credit balance after adjustments. Write the journal entry to record bad debt expense and adjust the allowance for doubtful accounts to its desired balance. 12/31 2. Assume the same facts as question #1 above, except the allowance for doubtful accounts has a $200 debit balance because of excessive uncollectible accounts. Write the journal entry to record bad debt expense and adjust the allowance account to its desired balance. 12/31 How does this journal entry impact the Accounting equation? 3. Leonardi & Sons are notified that a customer has declared bankruptcy and $500 owed to the company will not be paid. What is the journal entry to record this uncollectible account, using the allowance method? 4/5 XX 4. Nevaeh LLC is a successful interior design company which has collected $70,000 of their Accounts Receivable during the month of June. What is the journal entry to record this collection? 6/30 PLEASE PRINT (CLEARLY) THE NAME OF EACH MEMBER OF TODAY'S GROUP ______________________________ _______________________________ ______________________________ _______________________________ ...
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- Spring '07
- Double-entry bookkeeping system, Nevaeh LLC