Exercise 8-07On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,521, Sheridan Company estimates that 9% of its accounts receivable balance of $105,300 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Sheridan Company determined that B. Jared’s account was uncollectible and wrote off $1,165. On June 12, 2022, Jared paid the amount previously written off.Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationDebitCreditChoose a transaction date December 31, 2021May 11, 2022June 12, 2022Enter an account title Enter a debit amount Enter a credit amount  Enter an account title Enter a debit amount Enter a credit amount Choose a transaction date December 31, 2021May 11, 2022June 12, 2022Enter an account title Enter a debit amount Enter a credit amount  Enter an account title Enter a debit amount Enter a credit amount Choose a transaction date December 31, 2021May 11, 2022June 12, 2022Enter an account title to reinstate account previously written off Enter a debit amount Enter a credit amount  Enter an account title to reinstate account previously written off Enter a debit amount Enter a credit amount  (To reinstate account previously written off)   Enter an account title Enter a debit amount Enter a credit amount  Enter an account title Enter a debit amount Enter a credit amount

Question
Asked Oct 28, 2019
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Exercise 8-07

On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,521, Sheridan Company estimates that 9% of its accounts receivable balance of $105,300 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Sheridan Company determined that B. Jared’s account was uncollectible and wrote off $1,165. On June 12, 2022, Jared paid the amount previously written off.

Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date
Account Titles and Explanation
Debit
Credit
Choose a transaction date
 December 31, 2021May 11, 2022June 12, 2022
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
 
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
Choose a transaction date
 December 31, 2021May 11, 2022June 12, 2022
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
 
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
Choose a transaction date
 December 31, 2021May 11, 2022June 12, 2022
Enter an account title to reinstate account previously written off
 
Enter a debit amount
 
Enter a credit amount
 
 
Enter an account title to reinstate account previously written off
 
Enter a debit amount
 
Enter a credit amount
 
 
(To reinstate account previously written off)
   
 
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
 
Enter an account title
 
Enter a debit amount
 
Enter a credit amount
 
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Allowance for Doubtful Accounts: This is a contra asset account to the Accounts Receivables account that reduces the asset balance, and report the net realizable accounts receivable value on the balance sheet. Allowance for Doubtful Accounts indicates the amount of receivables that are expected to remain uncollectible.

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