Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $2,360. May 15. Received $1,180 as partial payment on the $3,140 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $2,360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $1,580 Duane DeRosa 1,180 Teresa Galloway 710 Ernie Klatt 990 Marty Richey 350 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es). a. Journalize the transactions under the direct write-off method. Apr. 13 fill in the blank 5f361afd0fdd07e_2 fill in the blank 5f361afd0fdd07e_4 May 15 fill in the blank 5f361afd0fdd07e_6 fill in the blank 5f361afd0fdd07e_7 fill in the blank 5f361afd0fdd07e_9 fill in the blank 5f361afd0fdd07e_10 fill in the blank 5f361afd0fdd07e_12 fill in the blank 5f361afd0fdd07e_13 July 27-reinstate fill in the blank 5f361afd0fdd07e_15 fill in the blank 5f361afd0fdd07e_17 July 27-collection fill in the blank 5f361afd0fdd07e_19 fill in the blank 5f361afd0fdd07e_21 Dec. 31-write-off fill in the blank 5f361afd0fdd07e_23 fill in the blank 5f361afd0fdd07e_24 fill in the blank 5f361afd0fdd07e_26 fill in the blank 5f361afd0fdd07e_27 fill in the blank 5f361afd0fdd07e_29 fill in the blank 5f361afd0fdd07e_30 fill in the blank 5f361afd0fdd07e_32 fill in the blank 5f361afd0fdd07e_33 fill in the blank 5f361afd0fdd07e_35 fill in the blank 5f361afd0fdd07e_36 fill in the blank 5f361afd0fdd07e_38 fill in the blank 5f361afd0fdd07e_39 Dec. 31-adjusting fill in the blank 5f361afd0fdd07e_41 fill in the blank 5f361afd0fdd07e_43 b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 3% of credit sales are expected to be uncollectible. Shipway Company recorded $383,600 of credit sales during the year. Apr. 13 fill in the blank 524ae2f7f065ffc_2 fill in the blank 524ae2f7f065ffc_4 May 15 fill in the blank 524ae2f7f065ffc_6 fill in the blank 524ae2f7f065ffc_7 fill in the blank 524ae2f7f065ffc_9 fill in the blank 524ae2f7f065ffc_10 fill in the blank 524ae2f7f065ffc_12 fill in the blank 524ae2f7f065ffc_13 July 27-reinstate fill in the blank 524ae2f7f065ffc_15 fill in the blank 524ae2f7f065ffc_17 July 27-collection fill in the blank 524ae2f7f065ffc_19 fill in the blank 524ae2f7f065ffc_21 Dec. 31-write-off fill in the blank 524ae2f7f065ffc_23 fill in the blank 524ae2f7f065ffc_24 fill in the blank 524ae2f7f065ffc_26 fill in the blank 524ae2f7f065ffc_27 fill in the blank 524ae2f7f065ffc_29 fill in the blank 524ae2f7f065ffc_30 fill in the blank 524ae2f7f065ffc_32 fill in the blank 524ae2f7f065ffc_33 fill in the blank 524ae2f7f065ffc_35 fill in the blank 524ae2f7f065ffc_36 fill in the blank 524ae2f7f065ffc_38 fill in the blank 524ae2f7f065ffc_39 Dec. 31-adjusting fill in the blank 524ae2f7f065ffc_41 fill in the blank 524ae2f7f065ffc_43 c. How much higher (lower) would Shipway Company’s net income have been under the direct write-off method than under the allowance method? by $fill in the blank 837c13f34f80fce_2

Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31: Apr. 13. Wrote off account of Dean Sheppard, $2,360. May 15. Received $1,180 as partial payment on the $3,140 account of Dan Pyle. Wrote off the remaining balance as uncollectible. July 27. Received $2,360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt. Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry): Paul Chapman $1,580 Duane DeRosa 1,180 Teresa Galloway 710 Ernie Klatt 990 Marty Richey 350 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es). a. Journalize the transactions under the direct write-off method. Apr. 13 fill in the blank 5f361afd0fdd07e_2 fill in the blank 5f361afd0fdd07e_4 May 15 fill in the blank 5f361afd0fdd07e_6 fill in the blank 5f361afd0fdd07e_7 fill in the blank 5f361afd0fdd07e_9 fill in the blank 5f361afd0fdd07e_10 fill in the blank 5f361afd0fdd07e_12 fill in the blank 5f361afd0fdd07e_13 July 27-reinstate fill in the blank 5f361afd0fdd07e_15 fill in the blank 5f361afd0fdd07e_17 July 27-collection fill in the blank 5f361afd0fdd07e_19 fill in the blank 5f361afd0fdd07e_21 Dec. 31-write-off fill in the blank 5f361afd0fdd07e_23 fill in the blank 5f361afd0fdd07e_24 fill in the blank 5f361afd0fdd07e_26 fill in the blank 5f361afd0fdd07e_27 fill in the blank 5f361afd0fdd07e_29 fill in the blank 5f361afd0fdd07e_30 fill in the blank 5f361afd0fdd07e_32 fill in the blank 5f361afd0fdd07e_33 fill in the blank 5f361afd0fdd07e_35 fill in the blank 5f361afd0fdd07e_36 fill in the blank 5f361afd0fdd07e_38 fill in the blank 5f361afd0fdd07e_39 Dec. 31-adjusting fill in the blank 5f361afd0fdd07e_41 fill in the blank 5f361afd0fdd07e_43 b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 3% of credit sales are expected to be uncollectible. Shipway Company recorded $383,600 of credit sales during the year. Apr. 13 fill in the blank 524ae2f7f065ffc_2 fill in the blank 524ae2f7f065ffc_4 May 15 fill in the blank 524ae2f7f065ffc_6 fill in the blank 524ae2f7f065ffc_7 fill in the blank 524ae2f7f065ffc_9 fill in the blank 524ae2f7f065ffc_10 fill in the blank 524ae2f7f065ffc_12 fill in the blank 524ae2f7f065ffc_13 July 27-reinstate fill in the blank 524ae2f7f065ffc_15 fill in the blank 524ae2f7f065ffc_17 July 27-collection fill in the blank 524ae2f7f065ffc_19 fill in the blank 524ae2f7f065ffc_21 Dec. 31-write-off fill in the blank 524ae2f7f065ffc_23 fill in the blank 524ae2f7f065ffc_24 fill in the blank 524ae2f7f065ffc_26 fill in the blank 524ae2f7f065ffc_27 fill in the blank 524ae2f7f065ffc_29 fill in the blank 524ae2f7f065ffc_30 fill in the blank 524ae2f7f065ffc_32 fill in the blank 524ae2f7f065ffc_33 fill in the blank 524ae2f7f065ffc_35 fill in the blank 524ae2f7f065ffc_36 fill in the blank 524ae2f7f065ffc_38 fill in the blank 524ae2f7f065ffc_39 Dec. 31-adjusting fill in the blank 524ae2f7f065ffc_41 fill in the blank 524ae2f7f065ffc_43 c. How much higher (lower) would Shipway Company’s net income have been under the direct write-off method than under the allowance method? by $fill in the blank 837c13f34f80fce_2

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter8: Receivables

Section: Chapter Questions

Problem 14E: Entries for bad debt expense under the direct write-off and allowance methods The following selected...

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Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:

Apr. 13.

Wrote off account of Dean Sheppard, $2,360.

May 15.

Received $1,180 as partial payment on the $3,140 account of Dan Pyle. Wrote off the remaining balance as uncollectible.

July 27.

Received $2,360 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt.

Dec. 31.

Wrote off the following accounts as uncollectible (record as one journal entry):

Paul Chapman	$1,580
Duane DeRosa	1,180
Teresa Galloway	710
Ernie Klatt	990
Marty Richey	350

Dec. 31

If necessary, record the year-end adjusting entry for uncollectible accounts.

For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es).

a. Journalize the transactions under the direct write-off method.

Apr. 13	fill in the blank 5f361afd0fdd07e_2
		fill in the blank 5f361afd0fdd07e_4
May 15	fill in the blank 5f361afd0fdd07e_6	fill in the blank 5f361afd0fdd07e_7
	fill in the blank 5f361afd0fdd07e_9	fill in the blank 5f361afd0fdd07e_10
	fill in the blank 5f361afd0fdd07e_12	fill in the blank 5f361afd0fdd07e_13
July 27-reinstate	fill in the blank 5f361afd0fdd07e_15
		fill in the blank 5f361afd0fdd07e_17
July 27-collection	fill in the blank 5f361afd0fdd07e_19
		fill in the blank 5f361afd0fdd07e_21
Dec. 31-write-off	fill in the blank 5f361afd0fdd07e_23	fill in the blank 5f361afd0fdd07e_24
	fill in the blank 5f361afd0fdd07e_26	fill in the blank 5f361afd0fdd07e_27
	fill in the blank 5f361afd0fdd07e_29	fill in the blank 5f361afd0fdd07e_30
	fill in the blank 5f361afd0fdd07e_32	fill in the blank 5f361afd0fdd07e_33
	fill in the blank 5f361afd0fdd07e_35	fill in the blank 5f361afd0fdd07e_36
	fill in the blank 5f361afd0fdd07e_38	fill in the blank 5f361afd0fdd07e_39
Dec. 31-adjusting	fill in the blank 5f361afd0fdd07e_41
		fill in the blank 5f361afd0fdd07e_43

b. Journalize the transactions under the allowance method. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 3% of credit sales are expected to be uncollectible. Shipway Company recorded $383,600 of credit sales during the year.

Apr. 13	fill in the blank 524ae2f7f065ffc_2
		fill in the blank 524ae2f7f065ffc_4
May 15	fill in the blank 524ae2f7f065ffc_6	fill in the blank 524ae2f7f065ffc_7
	fill in the blank 524ae2f7f065ffc_9	fill in the blank 524ae2f7f065ffc_10
	fill in the blank 524ae2f7f065ffc_12	fill in the blank 524ae2f7f065ffc_13
July 27-reinstate	fill in the blank 524ae2f7f065ffc_15
		fill in the blank 524ae2f7f065ffc_17
July 27-collection	fill in the blank 524ae2f7f065ffc_19
		fill in the blank 524ae2f7f065ffc_21
Dec. 31-write-off	fill in the blank 524ae2f7f065ffc_23	fill in the blank 524ae2f7f065ffc_24
	fill in the blank 524ae2f7f065ffc_26	fill in the blank 524ae2f7f065ffc_27
	fill in the blank 524ae2f7f065ffc_29	fill in the blank 524ae2f7f065ffc_30
	fill in the blank 524ae2f7f065ffc_32	fill in the blank 524ae2f7f065ffc_33
	fill in the blank 524ae2f7f065ffc_35	fill in the blank 524ae2f7f065ffc_36
	fill in the blank 524ae2f7f065ffc_38	fill in the blank 524ae2f7f065ffc_39
Dec. 31-adjusting	fill in the blank 524ae2f7f065ffc_41
		fill in the blank 524ae2f7f065ffc_43

c. How much higher (lower) would Shipway Company’s net income have been under the direct write-off method than under the allowance method?
by $fill in the blank 837c13f34f80fce_2

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