Regents Supply completed the following transactions during 2008 and 2009:
Dec 31 Estimated that Uncollectible accounts expense for the year was 3/4 of 1% on credit sales of $400,000 and recorded that amount.
Dec 31 Made the closing entry for Uncollectible accounts Expense
Jan 17 Sold inventory to Abe Gomez, $600 on account. Ignore cost of goods sold
June 29 Wrote off the Abe Gomez account as uncollectible after repeated efforts to collect from him
Aug 6 Received $200 from Abe Gomez, along with a letter stating his intention to pay within 30days. Reinstated his account in full
Sept 4 Received the balance due from Abe Gomez
Dec 31 Made a compound entry to write off the following accounts as uncollectible: Bernard Clark, $700: marie Montrose, $300; and Terry Forman, $600
Dec 31 Estimated that Uncollectible Accounts Expense for the year was 2/3 of 1% on credit sales of $480,000 and recorded that amount as expense
Dec 31 Made the closing entry for Uncollectible Accounts expense.
1. Open ledger accounts for allowance for Uncollectible accounts and uncollectible accounts expense. These accounts have beginning balances of $0
2. Record the transactions in the journal and post to the two ledger accounts; remember to update the account balances but ignore posting references
3. The December 31 2009, balance of accounts receivable would be reported on the balance sheet at that date.
Your tutorial is in excel, attached, showing the entries for bad ...
Your tutorial is in excel, attached, showing the entries for bad debt expense (uncollectible accounts expense), allowance for uncollectible accounts, write off, recovery of write offs, closing expense to income summary and cumulative activity in the allowance account.