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Accounts receivable transactions are provided below for J Crane Co. Dec. 31, 2020 The company estimated...

Accounts receivable transactions are provided below for J Crane Co.

Dec. 31, 2020

The company estimated that 3% of its accounts receivable would become uncollectible. The balances in the Accounts Receivable account and Allowance for Doubtful Accounts were $684,000 and $3,000 (debit), respectively.

Mar. 5, 2021

The company determined that R. Mirza’s $3,100 account and D. Wight’s $6,900 account were uncollectible. The company’s accounts receivable were $719,000 before the accounts were written off.

June 6, 2021

Wight paid the amount that had been written off on March 5. The company’s accounts receivable were $674,000prior to recording the cash receipt for Wight.

(a)

Correct answer iconYour answer is correct.

Prepare the journal entries on December 31, 2020, March 5, 2021, and June 6, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

[Dec. 31, 2020 \/]

[Bad Debts Expense \/]

[          ]

[          ]

[Bad Debts Expense \/]

[          ]

[          ]

(To record estimate of uncollectible accounts.)

[Dec. 31, 2020 \/]

[Bad Debts Expense \/]

[          ]

[          ]

[Allowance for Doubtful Accounts \/]

[          ]

[          ]

(To record write off of accounts receivable.)

[Dec. 31, 2020 \/]

[Cash \/]

[          ]

[          ]

[No Entry \/]

[          ]

[          ]

(To record write off of accounts receivable.)

[Dec. 31, 2020 \/]

[Allowance for Doubtful Accounts \/]

[          ]

[          ]

[No Entry \/]

[          ]

[          ]

(To reverse write off.)

[Dec. 31, 2020 \/]

[Accounts Receivable - Mirza \/]

[          ]

[          ]

[Accounts Receivable - Wight \/]

[          ]

[          ]

(Collection of account that was previously written off.)

eTextbook and Media

List of Accounts

Attempts: 3 of 5 used

(b)

Your Answer

Correct Answer

Correct answer iconYour answer is correct.

Post the journal entries to Allowance for Doubtful Accounts and calculate the new balance after each entry.

Allowance for Doubtful Accounts

Date

Explanation

Ref.

Debit

Credit

Balance

Dec. 31, 2020

Balance unadjusted Debit

[          ]

Dec. 31, 2020

AJE

[          ]

[          ]

[          ]

Mar. 5, 2021

Write off Mirza

[          ]

[          ]

[          ]

Mar. 5, 2021

Write off Wight

[          ]

[          ]

[          ]

June 6, 2021

Reverse write off

[          ]

[          ]

[          ]

eTextbook and Media

List of Accounts

Attempts: 5 of 5 used

(c)

Incorrect answer iconYour answer is incorrect.

Calculate the carrying amount of the accounts receivable both before and after recording the cash receipt from Wight on June 6, 2021.

Carrying amount before recovery

$ [          ]

Carrying amount after recovery

$ [          ]

Solutions

Expert Solution

AR

ekkarill92 answered 2 years ago
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