Ch+08+Edited

And bad debts accounting for ar and bad debts

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Unformatted text preview: eceivable Beg. 500 Sale 600 333 333 Allowance for Doubtful Accounts 100 End. 333 333 8-16 25 Beg. 25 End. Accounting for A/R and Bad Debts Accounting for A/R and Bad Debts Accounting Collected of $333 on account? Collected of $333 on account? Cash Cash Accounts receivable Accounts receivable Accounts Receivable Beg. 500 Sale 100 End. 267 8-17 333 333 333 333 Allowance for Doubtful Accounts 25 333 Beg. 25 End. Coll. Accounting for A/R and Bad Debts Accounting for A/R and Bad Debts Accounting Adjustment of $15 for estimated Bad-Debts? Adjustment of $15 for estimated Bad-Debts? Bad debt expense 15 Bad debt expense Bad 15 Bad Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable Beg. 500 Sale 100 End. 267 8-18 15 15 Allowance for Doubtful Accounts 25 333 Beg. 25 End. Coll. Accounting for A/R and Bad Debts Accounting for A/R and Bad Debts Accounting Adjustment of $15 for estimated Bad-Debts? Adjustment of $15 for estimated Bad-Debts? Bad debt expense 15 Bad debt expense 15 Allowance for Doubtful Accounts Allowance for Doubtful Accounts Accounts Receivable Beg. 500 Sale 100 End. 267 8-19 15 15 Allowance for Doubtful Accounts 25 333 Coll. Beg. 15 Est. 40 End. Accounting for A/R and Bad Debts Accounting for A/R and Bad Debts Accounting Write-off of uncollectible accounts for $10? Write-off of uncollectible accounts for $10? Allowance for Doubtful accounts Allowance for Doubtful accounts Accounts receivable Accounts receivable Accounts Receivable Beg. 500 Sale 100 End. 267 8-20 10 10 10 10 Allowance for Doubtful Accounts 25 333 Coll. Beg. 15 Est. 40 End. Accounting for A/R and Bad Debts Accounting for A/R and Bad Debts Accounting Write-off of uncollectible accounts for $10? Write-off of uncollectible accounts for $10? Allowance for Doubtful accounts Allowance for Doubtful accounts Allowance Allowance Accounts receivable Accounts receivable Accounts Receivable Beg. 100 25 8-21 257 333 W/O W/O Beg. 15 Coll. 10 End. 10 10 Allowance for Doubtful Accounts 500 Sale 10 10 Est. 30 End. 10 Assets Assets Assets Current Assets: Current Assets: Cash Cash Accounts receivable,,net of $30 allowance 30 allowance Accounts receivable net of $30allowance 30 allowance for doubtful accounts for doubtful accounts Inventory Inventory Prepaids Prepaids Total current assets Total current assets Fixed Assets: Fixed Assets: Office equipment Office equipment Furniture & fixtures Furniture & fixtures Less: Accumulated depreciation Less: Accumulated depreciation Total fixed assets Total fixed assets Total Assets Total Assets Total Total 8-22 $ 346 $ 346 227 227 812 812 _ 40 _ 40 1,425 1,425 5,679 5,679 6,600 6,600 ((3,735) 3,735) 8,544 8,544 $ 9,969 $ 9,969 Valuing Accounts Receivable Valuing Accounts Receivable Direct Write-off Method for Uncollectible Accounts Illustration: Assume, for example, that Warden Co. writes off M. E. Doran’s $200 balance as uncollectible on December 12. Warden’s entry is: Bad debts expense Accounts receivable 8-23 200 200 SO 3...
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