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    Instructions: Bad Debt Expense Allowance For Doubtful Accounts

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    Wisanggeni Ratu
    This document provides instructions and journal entries for adjusting the allowance for doubtful accounts at the end of 2017 and 2018. At December 31, 2017 the unadjusted balance in allowance for doubtful accounts is a credit of €9,200. The adjusting entry increases the allowance by €31,630 to match the estimated uncollectible amount of €40,830. In 2018, a €1,000 receivable written off in March is collected in May, with corresponding entries to allowance and receivables accounts. The 2018 year-end adjusting entry increases the allowance by €32,700 to match the estimated uncollectible amount of €31,600.

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    Instructions: Bad Debt Expense Allowance For Doubtful Accounts

    Uploaded by

    Wisanggeni Ratu
    67 views2 pages
    This document provides instructions and journal entries for adjusting the allowance for doubtful accounts at the end of 2017 and 2018. At December 31, 2017 the unadjusted balance in allowance for doubtful accounts is a credit of €9,200. The adjusting entry increases the allowance by €31,630 to match the estimated uncollectible amount of €40,830. In 2018, a €1,000 receivable written off in March is collected in May, with corresponding entries to allowance and receivables accounts. The 2018 year-end adjusting entry increases the allowance by €32,700 to match the estimated uncollectible amount of €31,600.

    Original Description:

    Solution p8-3a pengantar akuntansi

    Original Title

    p8-3a

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    This document provides instructions and journal entries for adjusting the allowance for doubtful accounts at the end of 2017 and 2018. At December 31, 2017 the unadjusted balance in allowance for doubtful accounts is a credit of €9,200. The adjusting entry increases the allowance by €31,630 to match the estimated uncollectible amount of €40,830. In 2018, a €1,000 receivable written off in March is collected in May, with corresponding entries to allowance and receivables accounts. The 2018 year-end adjusting entry increases the allowance by €32,700 to match the estimated uncollectible amount of €31,600.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    67 views2 pages

    Instructions: Bad Debt Expense Allowance For Doubtful Accounts

    Uploaded by

    Wisanggeni Ratu
    This document provides instructions and journal entries for adjusting the allowance for doubtful accounts at the end of 2017 and 2018. At December 31, 2017 the unadjusted balance in allowance for doubtful accounts is a credit of €9,200. The adjusting entry increases the allowance by €31,630 to match the estimated uncollectible amount of €40,830. In 2018, a €1,000 receivable written off in March is collected in May, with corresponding entries to allowance and receivables accounts. The 2018 year-end adjusting entry increases the allowance by €32,700 to match the estimated uncollectible amount of €31,600.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    P8-3A

    At December 31, 2017, the unadjusted balance in Allowance for Doubtful Accounts is a credit of
    €9,200

    Instructions

    (a) Journalize and post the adjusting entry for bad debts at December 31, 2017

    Dec 31 Bad Debt Expense €31,630


    Allowance for Doubtful Accounts €31,630
    (To adjust allowance account to total estimated
    uncollectibles €40,830-9,200 = €31,630)

    Bad Debt Expense Allowance for Doubtful Accounts


    Dec.31 Adj. 31,630 Bal. 9,200
    Dec. 31 Adj 31,630
    Bal. 40,830

    (b) Journalize and post to the allowance account the following events and transactions in the year
    2018.

    (1) On March 31, a €1,000 customer balance originating in 2017 is judged uncollectible.

    (2) On May 31, a check for €1,000 is received from the customer whose account was written off as
    uncollectible on March 31

    March 31 Allowance for Doubtful Accounts €1,000


    Accounts Receivable €1,000
    May 31 Accounts Receivable 1,000
    Allowance for Doubtful Accounts 1,000
    31 Cash 1,000
    Accounts Receivable 1,000
    Allowance for Doubtful Accounts
    Bal. 9,200
    Dec. 31 Adj 31,630
    Bal. 40,830
    2018
    March 31 1,000 Bal. 39,830
    May 31 1,000
    Bal. 40,830

    (c) Journalize the adjusting entry for bad debts on December 31, 2018, assuming that the
    unadjusted balance in Allowance for Doubtful Accounts is a debit of €1,100 and the aging
    schedule indicates that total estimated bad debts will be €31,600

    Dec 31 Bad Debt Expense €32,700


    Allowance for Doubtful Accounts €32,700
    (To record estimate of uncollectible accounts
    €31,600+1,100 = €32,700)

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