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Dec. 31 Allowance for Doubtful Accounts v 16,260 Accounts Receivable-Wade Dolan v 2,820 Accounts Receivable-Greg Gagne 1,750 Accounts Receivable-Amber Kisko v 6,720 Accounts Receivable-Shannon Poole v 3,900 V Accounts Receivable-Niki Spence v 1,070 Dec. 31 Bad Debt Expense v Allowance for Doubtful Accounts v Feedback Check My Work c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? Higher v by Feedback Check My Work Feedback Check My Work

Dec. 31 Allowance for Doubtful Accounts v 16,260 Accounts Receivable-Wade Dolan v 2,820 Accounts Receivable-Greg Gagne 1,750 Accounts Receivable-Amber Kisko v 6,720 Accounts Receivable-Shannon Poole v 3,900 V Accounts Receivable-Niki Spence v 1,070 Dec. 31 Bad Debt Expense v Allowance for Doubtful Accounts v Feedback Check My Work c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? Higher v by Feedback Check My Work Feedback Check My Work

FINANCIAL ACCOUNTING
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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bad debt expense?

Allowance for Doubtful Accounts Dec. 31 16,260 Accounts Receivable-Wade Dolan 2,820 Accounts Receivable-Greg Gagne v 1,750 Accounts Receivable-Amber Kisko v 6,720 Accounts Receivable-Shannon Poole v 3,900 Accounts Receivable-Niki Spence 1,070 Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts X Feedback Check My Work c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? Higher v by Feedback Check My Work Feedback Check My Work > >
Transcribed Image Text:Allowance for Doubtful Accounts Dec. 31 16,260 Accounts Receivable-Wade Dolan 2,820 Accounts Receivable-Greg Gagne v 1,750 Accounts Receivable-Amber Kisko v 6,720 Accounts Receivable-Shannon Poole v 3,900 Accounts Receivable-Niki Spence 1,070 Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts X Feedback Check My Work c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? Higher v by Feedback Check My Work Feedback Check My Work > >
b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $29,220 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days $468,000 3 % 31-60 days 175,000 61-90 days 56,000 25 91-120 days 20,000 55 More than 120 days 28,000 90 Total receivables $747,000 June 8 Allowance for Doubtful Accounts V 9,740 Accounts Receivable-Kathy Quantel 9,740 Cash Aug. 14 6,920 Allowance for Doubtful Accounts 10,510 V Accounts Receivable-Rosalie Oakes 17,430 Accounts Receivable-Kathy Quantel v Oct. 16 9,740 Allowance for Doubtful Accounts 9,740 Cash Oct. 16 9,740 Accounts Receivable-Kathy Quantel 0 740
Transcribed Image Text:b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $29,220 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days $468,000 3 % 31-60 days 175,000 61-90 days 56,000 25 91-120 days 20,000 55 More than 120 days 28,000 90 Total receivables $747,000 June 8 Allowance for Doubtful Accounts V 9,740 Accounts Receivable-Kathy Quantel 9,740 Cash Aug. 14 6,920 Allowance for Doubtful Accounts 10,510 V Accounts Receivable-Rosalie Oakes 17,430 Accounts Receivable-Kathy Quantel v Oct. 16 9,740 Allowance for Doubtful Accounts 9,740 Cash Oct. 16 9,740 Accounts Receivable-Kathy Quantel 0 740
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