Kwikdeal.com uses the allowance method to estimate uncollectible accou

QUESTION

Kwikdeal.com uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end
A) Calculate the total estimated bad debts based on the above information 253,500 x 3% = 7,605 135,200 x 4% = 5,405 55,700 x 5% = 2,785 13,000 x 6% = 780 17,000 x 10% = 1,700 Total estimated bad debts = 18,275 B) Prepare the year-end adjusting journal entry to record the bad debts using the aged uncollectible accounts receivable determined in the table above. Assume the unadjusted balance in the Allowance for Doubtful Accounts account is a $5,230 debit. 18,275 5,230 = 23,505 Dr Bad Debt Expense 23,505 Cr Allowance for Doubtful Accounts 23,505 C).Of the above accounts, $5,500 is determined to be specifically uncollectible. Prepare the journal entry to write off¦

e uncollectible account Dr Allowance for Doubtful Accounts 5,500 Cr Accounts Receivable 5,500 D). The company collects $5,500 subsequently on a specific account that had previously been determined to be uncollectible in the question above. Prepare the journal entry(ies) necessary to restore the account and record the cash collection Dr Accounts Receivable 5,500 Cr Allowance for Doubtful Accounts 5,500 Dr Cash 5,500 Cr Accounts Receivable 5,500

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