At the end of its annual accounting period, Midi Company estimated its bad debts as 0.67% of its $1,830,000 of credit sales madeduring the year. On December 31, Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the followingFebruary 1, management decided that the $2,600 account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Fourmonths later, on June 5, Hicks unexpectedly paid the amount previously written offGive the journal entries required to record these transactions.cesView transaction listJournal entry worksheet1 2Record the entry for estimated bad debts.Note Ester debits before creditsDate3<41FUTSACTION FISTJournal entry worksheetGeneral JournalDateFeb 0123Note: Enter debits before credits.Record entry4DebitRecord the entry to written off amount due from Catherine Hicks.General JournalCreditClear entry< Prev3 of 10DebitNext >CreditView general journal eBookAskPrintferencesBookrintrencesJournal entry worksheet<<1Note: Enter debits before credits.Record the entry to reinstate Catherine Hicks account previously written offDateJun 05Record entry12Journal entry worksheet2DateJun 0543Note: Enter debits before credits.Record entryGeneral Journal:Record the receipt from Catherine Hicks.Clear entryGeneral JournalClear entryDebitDebitCreditView general journalCredit< PrevView general journal3 of 10Next

Journal entries are the primary reporting or foremost reporting of transactions of a business. These…

At the end of its annual accounting period, Midi Company estimated its bad debts as 0.67% of its $1,830,000 of credit sales made during the year. On December 31, Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the following February 1, management decided that the $2,600 account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Four months later, on June 5, Hicks unexpectedly paid the amount previously written off Give the journal entries required to record these transactions.

At the end of its annual accounting period, Midi Company estimated its bad debts as 0.67% of its $1,830,000 of credit sales made during the year. On December 31, Midi made an addition to its Allowance for Doubtful Accounts equal to that amount. On the following February 1, management decided that the $2,600 account of Catherine Hicks was uncollectible and wrote it off as a bad debt. Four months later, on June 5, Hicks unexpectedly paid the amount previously written off Give the journal entries required to record these transactions.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter16: Accounting For Accounts Receivable

Section: Chapter Questions

Problem 3CP: At the end of 20-3, Martel Co. had 410,000 in Accounts Receivable and a credit balance of 300 in...

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Jars Plus recorded $861,430 in credit sales for the year and $488,000 in accounts receivable. The uncollectible percentage is 2.3% for the income statement method, and 3.6% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $10,220, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $5,470, record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.
Millennium Associates records bad debt using the allowance, income statement method. They recorded $299,420 in accounts receivable for the year, and $773,270 in credit sales. The uncollectible percentage is 3.2%. On February 5, Millennium Associates identifies one uncollectible account from Molar Corp in the amount of $1,330. On April 15, Molar Corp unexpectedly pays its account in full. Record journal entries for the following. A. Year-end adjusting entry for 2017 bad debt B. February 5, 2018 identification entry C. Entry for payment on April 15, 2018
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