Record the journal entries for the estimated bad debt expense and write-off of the uncollectible customer accounts.

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Chapter 6, Problem 6.1CON

1.

To determine

Record the journal entries for the estimated bad debt expense and write-off of the uncollectible customer accounts.

2.

To determine

Calculate the amount that P Corporation report for net sales for the month.

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Recording Entries to Estimate Bad Debt Expense Including the Write-Off and Subsequent Collection of an Account Following are accounts of Long Company at its December 31 year-end for the current year. $25,500 Accounts receivable balance, December 31, prior year Allowance for doubtful accounts balance, December 31, prior year Total sales revenue during the current year (1/6 are on credit) Uncollectible account written off during the current year (A. Smith) Cash collected on accounts receivable during the current year 1,500 480,000 500 85,000 Required Recording Write-off b. Prepare the entry to record bad debt expense for each of the following three cases. • Note: Treat each case separately. 1. Bad debt losses assume 1% of credit sales. Date Dec. 31 Bad Debt Expense Allowance for Doubtful Accounts To record bad debt Recording Bad Debt Expense Account Name Date Dec. 31 Bad Debt Expense Age Less than 30 days 31-90 days Account Name Allowance for Doubtful Accounts To record bad debt 91-120…

Current Year PriorYear Accounts receivable, net of allowances of $411 and $380 $ 29,224 $ 26,381 Net sales revenue 66,169 64,597 According to its Form 10-K, Macrosoft recorded bad debt expense of $122 and there were no bad debt recoveries during the current year. Required: Using the following T-account for Allowance for Doubtful Accounts, what amount of bad debts was written off during the current year? Using the following T-account for Accounts Receivable (Gross), solve for cash collected from customers for the current year, assuming that all of Macrosoft’s sales during the period were on open account.

View Policies Current Attempt in Progress Culver Company reports the following financial information before adjustments. Accounts Receivable Allowance for Doubtful Accounts Sales Revenue (all on credit) Sales Returns and Allowances Dr. $168,900 50,440 (b) No. Account Titles and Explanation (a) Cr. Prepare the journal entry to record bad debt expense assuming Culver Company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but Allowance for Doubtful Accounts had a $1,550 debit balance. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) $3,200 849,300 Debit NID Credit