The 12/31/13 unadjusted trial balance of a company disclosed the following balances: Additionally,the firm has given up trying to collect on $5,000 of its accounts receivable but has not yet recorded the write-off entry.The firm does not use the direct write off method to estimate bad debt expense.
(a) Provide the entry for the write-off of the receivable.
(b) If the firm uses the percentage of sales allowance method for recording bad debt expense,and has experienced an average 6% rate of non collection based on sales,provide the entry to record bad debt expense for 2013.
(c) Assume that after the firm recorded the $5,000 of write-offs,it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method.Provide the entry to record bad debt expense.

Question

The 12/31/13 unadjusted trial balance of a company disclosed the following balances:  Additionally,the firm has given up trying to collect on $5,000 of its accounts receivable but has not yet recorded the write-off entry.The firm does not use the direct write off method to estimate bad debt expense.
(a) Provide the entry for the write-off of the receivable.
(b) If the firm uses the percentage of sales allowance method for recording bad debt expense,and has experienced an average 6% rate of non collection based on sales,provide the entry to record bad debt expense for 2013.
(c) Assume that after the firm recorded the $5,000 of write-offs,it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method.Provide the entry to record bad debt expense.

Quizplus · Accepted Answer

The Answer of The 12/31/13 unadjusted trial balance of a company disclosed the following balances:  Additionally,the firm has given up trying to collect on $5,000 of its accounts receivable but has not yet recorded the write-off entry.The firm does not use the direct write off method to estimate bad debt expense.
(a) Provide the entry for the write-off of the receivable.
(b) If the firm uses the percentage of sales allowance method for recording bad debt expense,and has experienced an average 6% rate of non collection based on sales,provide the entry to record bad debt expense for 2013.
(c) Assume that after the firm recorded the $5,000 of write-offs,it determined that 18% of its remaining accounts receivable will be uncollectible under the aging method.Provide the entry to record bad debt expense.

The 12/31/13 Unadjusted Trial Balance of a Company Disclosed the Following