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    Leeds Company, Megan Jost, Allowance for Doubtful Accounts

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    On December 31, 2010, when its Allowance for Doubtful Accounts had a credit balance of $1,500, Leeds Company estimates that 7% of its accounts receivable balance of $95,000 will become uncollectible. On March 3, 2011, Leeds Company determined that Megan Jost's account of $950 was uncollectible. On May 15, 2011, Jost paid the amount previously written off.

    Instructions:
    Prepare the journal entries for December 31, 2010, March 3, 2011 and May 15, 2011.

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    https://brainmass.com/business/allowance-method/preparing-journal-entries-doubtful-accounts-445748

    Solution Preview

    First, we analyze the activity in the contra account:

    Allowance for Doubtful Accounts
    ---------------------------------------------
    Beg .................................$1,500

    Write off...........................($950)

    Recover write ...

    Solution Summary

    Your tutorial analyzes the activity in the allowance accounts and then gives you journal entries for write offs, recovery of write offs and collecting the old invoices, and recording bad debt expense for the year.

    $2.19