Question

# If the company decided to use 3.5% of sales as uncollectible instead of an aging schedule,...

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 If the company decided to use 3.5% of sales as uncollectible instead of an aging schedule, and sales totaled \$1,232,139, provide the entry to record bad debt expense, including a new t-account for the allowance. Assume the same information from #13 for beginning balance, write-off, and collection of write-off. If the beginning balance in Allowance for Doubtful Accounts is \$10,574 and \$7,813 was written off during the year (assume \$1,313 of this amount was later collected this year), what is the amount of the bad debt expense? Provide a t-account for the allowance account as well as the applicable journal entries to record the write-off, subsequent collection of a portion of the write off, and the bad debt expense.

13. what is the amount of the bad debt expense = 0

T - account:

 Allowance for doubtful accounts a 7813 Op bal 10574 b 1313 Cl bal 4074

Journal entries:

 S No Account titles Debit Credit a Allowance for doubtful accounts 7813 Accounts receivable 7813 [Write off of bad debts] b Accounts receivable 1313 Allowance for doubtful accounts 1313 [reinstate the account] Cash 1313 Accounts receivable 1313 [Cash receipt of written off account]

14.

 S No Account titles Debit Credit c Bad debt expense 43125 Allowance for doubtful accounts 43125 [ Uncollectible accounts estimate] [1232139*3.5%]

New T account:

 Allowance for doubtful accounts a 7813 Op bal 10574 b 1313 c 43125 Cl bal 47199

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