Exercise 8-8 Receivables, allowance for doubtful accounts, write-off, and subsequent recovery LO1, 2, 3 Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $51,800, the bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,180. Journalize the remaining journal entries for the 2020 year. Dec. 2 Sold tents for $5,360 on account with a cost of $2,680. Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,380 and 20 Grouse Co. with an accounts receivable balance of $2,680 were uncollectible and needed to be written off. 23 Unexpectedly received payment from Grouse Co. for $2,680. 31 Estimated that 10% of accounts receivable recorded to date would be uncollectible. Required: 1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately. View transaction list Journal entry worksheet 2 3 4 5 Record the sales. Note: Enter debits before credits. Date General Journal Debit Credit Dec 02, 2020 Record entry Clear entry View general journal
Exercise 8-8 Receivables, allowance for doubtful accounts, write-off, and subsequent recovery LO1, 2, 3 Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $51,800, the bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,180. Journalize the remaining journal entries for the 2020 year. Dec. 2 Sold tents for $5,360 on account with a cost of $2,680. Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,380 and 20 Grouse Co. with an accounts receivable balance of $2,680 were uncollectible and needed to be written off. 23 Unexpectedly received payment from Grouse Co. for $2,680. 31 Estimated that 10% of accounts receivable recorded to date would be uncollectible. Required: 1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be posted separately. View transaction list Journal entry worksheet 2 3 4 5 Record the sales. Note: Enter debits before credits. Date General Journal Debit Credit Dec 02, 2020 Record entry Clear entry View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 8-8 Receivables, allowance for doubtful accounts, write-off, and subsequent recovery LO1, 2, 3
Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts recelvable account had a balance of $51,800, the
bad debt expense account had a balance of $0, and the allowance for doubtful accounts had a credit balance of $5,180. Journalize the
remaining journal entries for the 2020 year.
Dec. 2 Sold tents for $5,360 on account with a cost of $2,680.
Determined that the total accounts of Rocky Co. with an accounts receivable balance of $1,380 and
20 Grouse Co. with an accounts receivable balance of $2,680 were uncollectible and needed to be
written off.
23 Unexpectedly received payment from Grouse Co. for $2,680.
31 Estimated that 10% of accounts receivable recorded to date would be uncollectible.
Required:
1. Prepare journal entries to record the transactions. Note: Write-off of uncollectible accounts for Rocky Co. and Grouse Co. should be
posted separately.
View transaction list
Journal entry worksheet
1
3
4
6.
Record the sales.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
Dec 02, 2020
Record entry
Clear entry
View general jourmal
2. Post the T-account for accounts receivable, bad debt expense, and allowance for doubtful accounts. Determine the ending balance
for each account.
Accounts Receivable
Allowance for Doubtful Accounts
Beg. Bal.
51,800
Beg Bal.
5,180
End. Bal.
51,800
End. Bal.
5,180
Bad debt expense
Beg. Bal.
End Bal
Expert Solution
Step 1
Accounts Receivables at the end = Beginning accounts receivables + sales made - accounts written off
= 51800 + 5360 - 2680 = $54480
Required allowance for doubtful debts = 54480*10% = $5448
Existing balance in allowance after writeoff = 5180 - 2680 = $2500
Allowance to be created = 5448 - 2500 = $2948
Required journal entries are given below:
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