Question
In: Accounting
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods
Seaforth International wrote off the following accounts
receivable as uncollectible for the year ending December
31:
| Customer | Amount | ||
| Kim Abel | $21,550 | ||
| Lee Drake | 33,925 | ||
| Jenny Green | 27,565 | ||
| Mike Lamb | 19,460 | ||
| Total | $102,500 | ||
The company prepared the following aging schedule for its
accounts receivable on December 31:
| Aging Class (Number of Days Past Due) |
Receivables Balance on December 31 |
Estimated Percent of Uncollectible Accounts |
|||
| 0-30 days | $715,000 | 1% | |||
| 31-60 days | 310,000 | 2 | |||
| 61-90 days | 102,000 | 15 | |||
| 91-120 days | 76,000 | 30 | |||
| More than 120 days | 97,000 | 60 | |||
| Total receivables | $1,300,000 | ||||
a. Journalize the write-offs under the direct write-off method. If an amount box does not require an entry, leave it blank.
b. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the allowance account had a beginning credit balance of $95,000 on January 1 and the company uses the analysis of receivables method. For a compound transaction, if an amount box does not require an entry, leave it blank.
| Write-off | |||
| Adjustment | |||
c. How much higher (lower) would Seaforth
International's net income have been under the allowance method
than under the direct write-off method?
$
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off...
Entries for Bad Debt Expense Under the Direct Write-Off and
Allowance Methods
Seaforth International wrote off the following accounts
receivable as uncollectible for the year ending December
31:
Customer
Amount
Kim Abel
$21,550
Lee Drake
33,925
Jenny Green
27,565
Mike Lamb
19,460
Total
$102,500
The company prepared the following aging schedule for its
accounts receivable on December 31:
Aging Class (Number
of Days Past Due)
Receivables Balance
on December 31
Estimated Percent of
Uncollectible Accounts
0-30 days
$715,000
1%
31-60...
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods Seaforth International wrote off...
Entries for Bad Debt Expense Under the Direct Write-Off and
Allowance Methods
Seaforth International wrote off the following accounts
receivable as uncollectible for the year ending December
31:
Customer
Amount
Kim Abel
$24,400
Lee Drake
34,000
Jenny Green
29,800
Mike Lamb
17,800
Total
$106,000
The company prepared the following aging schedule for its
accounts receivable on December 31:
Aging Class (Number
of Days Past Due)
Receivables Balance
on December 31
Estimated Percent of
Uncollectible Accounts
0-30 days
$735,000
1
%...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Method Casebolt Company wrote off...
Entries for Bad Debt Expense under the Direct Write-Off and
Allowance Method
Casebolt Company wrote off the following accounts receivable as
uncollectible for the first year of its operations ending December
31:
Customer
Amount
Shawn Brooke
$19,600
Eve Denton
18,300
Art Malloy
25,100
Cassie Yost
4,700
Total
67,700
a. Journalize the write-offs under the direct
write-off method. If an amount box does not require an entry, leave
it blank.
Bad Debt Expense
Accounts Receivable-Shawn
Brooke
Accounts Receivable-Eve
Denton
Accounts Receivable-Art...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions...
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, $3,370.
May 15
Received $1,690 as partial payment on the $4,480 account of Dan
Pyle. Wrote off the remaining balance as uncollectible.
July 27
Received $3,370 from Dean Sheppard, whose account had been
written off on April 13....
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions...
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, $5,280.
May 15
Received $2,640 as partial payment on the $7,020 account of Dan
Pyle. Wrote off the remaining balance as uncollectible.
July 27
Received $5,280 from Dean Sheppard, whose account had been
written off on April 13....
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions...
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, $2,960.
May 15
Received $1,480 as partial payment on the $3,940 account of Dan
Pyle. Wrote off the remaining balance as uncollectible.
July 27
Received $2,960 from Dean Sheppard, whose account had been
written off on April 13....
Entries for bad debt expense under the direct write-off and allowance methods Instructions Chart of Accounts...
Entries for bad debt expense under the direct write-off and
allowance methods
Instructions
Chart of Accounts
Journal
Final Question
Instructions
Seaforth International wrote off the following accounts
receivable as uncollectible for the year ending December 31:
Customer
Amount
Kim Abel
$ 24,300
Lee Drake
31,195
Jenny Green
29,715
Mike Lamb
17,890
Total
$103,100
The company prepared the following aging schedule for its
accounts receivable on December 31:
Aging Class (Number of Days Past Due)
Receivables Balance on December 31
Estimated...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions...
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, $5,050.
May 15.
Received $2,530 as partial payment on the $6,720 account of Dan
Pyle. Wrote off the remaining balance as uncollectible.
July 27.
Received $5,050 from Dean Sheppard, whose account had been
written off on April 13....
Entries for Bad Debt Expense Under the Direct Write-Off and Allowance Methods The following selected transactions...
Entries for Bad Debt Expense Under the Direct Write-Off and
Allowance Methods
The following selected transactions were taken from the records
of Rustic Tables Company for the year ending December 31:
June 8.
Wrote off account of Kathy Quantel, $7,700.
Aug. 14.
Received $5,470 as partial payment on the $13,780 account of
Rosalie Oakes. Wrote off the remaining balance as
uncollectible.
Oct. 16.
Received the $7,700 from Kathy Quantel, whose account had been
written off on June 8. Reinstated the...
Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods The following selected transactions...
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, $7,390.
May 15 Received $3,700 as partial payment on the $9,830 account
of Dan Pyle. Wrote off the remaining balance as uncollectible.
July 27 Received $7,390 from Dean Sheppard, whose account had
been written off on April 13....
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