Crane Tools uses the allowance method to account for uncollectible accounts. May 20 The account of Barack Obama for $1,567 was deemed to be uncollectible and is written off as a bad debt. Aug. 7 Received a check for $378 from Barack Obama whose account had previously been written off as uncollectible. 31 Use the following information for the year-end adjusting entry: The balances of Accounts Receivable and Allowance for Doubtful Accounts at year-end are $142,800 and $142, respectively, both with debit balances. It is estimated that bad debts will be 1.5% of accounts receivable. Dec. Prepare the appropriate journal entries to record the above transactions during 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Crane Tools uses the allowance method to account for uncollectible accounts. May 20 The account of Barack Obama for $1,567 was deemed to be uncollectible and is written off as a bad debt. Aug. 7 Received a check for $378 from Barack Obama whose account had previously been written off as uncollectible. 31 Use the following information for the year-end adjusting entry: The balances of Accounts Receivable and Allowance for Doubtful Accounts at year-end are $142,800 and $142, respectively, both with debit balances. It is estimated that bad debts will be 1.5% of accounts receivable. Dec. Prepare the appropriate journal entries to record the above transactions during 2014. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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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