At December 31, 2022, the trial balance of Skysong Company contained the following amounts before adjustment. Debit Credit Accounts Receivable $194,000 Allowance for Doubtful Accounts $ 1,200 Sales Revenue 901,000 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,900 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,200 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,800 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Skysong Company uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles Debit Credit (a) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (b) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (c) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount (d) Enter an account title Enter a debit amount Enter a credit amount Enter an account title Enter a debit amount Enter a credit amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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At December 31, 2022, the trial balance of Skysong Company contained the following amounts before adjustment.

	Debit	Credit
Accounts Receivable	$194,000
Allowance for Doubtful Accounts		$ 1,200
Sales Revenue		901,000

(a)		Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,900 of accounts receivable will be uncollectible.
(b)		Repeat part (a), assuming that instead of a credit balance there is a $1,200 debit balance in Allowance for Doubtful Accounts.
(c)		During the next month, January 2023, a $2,800 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off.
(d)		Repeat part (c), assuming that Skysong Company uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

	Account Titles	Debit	Credit
(a)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(b)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(c)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount
(d)	Enter an account title	Enter a debit amount	Enter a credit amount
	Enter an account title	Enter a debit amount	Enter a credit amount

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