Question

1 On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had...

1 On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had a debit balance of $1,000 on its unadjusted trial balanace.  CDE Company estimates that 10% of its  gross accounts receivable balance of $95,000 will become uncollectible. On March 31, 2020, CDECompany determined that Customer A’s account of $1200 was uncollectible. On April 8, 2020, Customer A paid the amount previously written off.
Based on the facts above, prepare any journal entry or entries that would necessary on  December 31, 2019:

2  On December 31, 2019 (at fiscal year end), CDE Company's Allowance for Doubtful Accounts had a debit balance of $1,000 on its unadjusted trial balanace.  CDE Company estimates that 10% of its  gross accounts receivable balance of $95,000 will become uncollectible. On March 31, 2020, CDE Company determined that Customer A’s account of $1200 was uncollectible. On April 8, 2020, Customer A paid the amount previously written off.
Based on the facts above, prepare any journal entry or entries that would necessary on  March 31, 2020:

Homework Answers

Answer #1
Journal entries
S.no. Accounts title and explanations Debit $ Credit $
31.12.19 Bad debts expenses (95000*10%+1000) 10500
Allowance for doubtful account 10500
(for recognizing the bad debts expense)
31.03.20 Allowance for doubtful accounts 1200
     Accounts receivable 1200
(for amount written off)
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