Accounts Receivable and Writing off Bad Debt

joes plumbing assumes that 8 of its accounts

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Unformatted text preview: ssumes that .8% of its accounts receivable will become worthless. W & {fil?, tXj}23vl!;<-GOO . ,t A\loNavtUL {uy ]nut .fu I Hccfs C£OJ ~;;;- _oJ_A·md. ~ L-\ iP '-'· -11)r f)JJY!S]V. U~ ,no ,iuio ' ~ '(,i)iJ l_';' -~ lr2VD ~ ;1'\1.4~ ~ *Note: Joe's plumbing will use only ONE of the ways to estimate bad debts expense, not both. Accounts Receivable: Writing off Bad Debts The December 31 , 20Xl balance sheet of Oregon Pines includes the following information about the company's receivables: Accounts receivable from customers Less: Allowance for doubtful accounts $890,000 ( 20,000) 870,000 Record the following events in the form of general journal entries: Accounts receivable of $11,800 were written off as uncollectible. (Use one journal entry to summarize all of these write-offs.) ~\ ID~nc.e ~r Mb+Wt AcwJtt-h {t,e£0 R'roJntJ K..ectJ tab(( Show the impact of this write off on the balance sheet and income statement. Revenues Net income Assets Liabilities An aging of accounts receivable at ecember 31, 20X2 indicated the need for a $22,000 allowance for doubtful accounts. Provide the adjusting entry needed at the end of the year. \3/?no Show the impact of this adjusting entry on the balance sheet and income statement. Revenues -- Liabilities...
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