On December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected Credit Losses had an unadjusted debit balance of $1,900, Runner Corp. estimated that $15,800 of its accounts receivable account would become uncollectible, and it recorded the credit losses adjusting entry. On May 11, 2024, Runner determined that Fei Ya Cheng's account was uncollectible and wrote off $1,800. On November 12, 2024, Cheng paid the amount previously written off.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
![On December 31, 2023, when its accounts receivable were $282,000 and its Allowance for Expected Credit Losses had an unadjusted
debit balance of $1,900, Runner Corp. estimated that $15,800 of its accounts receivable account would become uncollectible, and it
recorded the credit losses adjusting entry. On May 11, 2024, Runner determined that Fei Ya Cheng's account was uncollectible and
wrote off $1,800. On November 12, 2024, Cheng paid the amount previously written off.
(a)
Your answer is partially correct.
Prepare the required journal entries to record each of the above transactions. (List all debit entries before credit entries.
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. Record entries in the order displayed in the problem
statement.)
2023
(b)
Date
Account Titles and Explanation
Dec. 31
No Entry
2024
No Entry
Date
Account Titles and Explanation
May 11
Allowance for Expected Credit Losses
Accounts Receivable
Nov. 12
Accounts Receivable
Allowance for Expected Credit Losses
(To reinstate account previously
written off)
Cash
Accounts Receivable
(To record amount collected)
eTextbook and Media
List of Accounts
Debit
Credit
Debit
1800
1800
1800
Credit
1800
1800
1800
Attempts: 2 of 2 used
What is the carrying amount of the receivables on (1) December 31, 2023; (2) May 11, 2024; and (3) November 12, 2024,
assuming that the total amount of accounts receivable of $282,000 is unchanged on each of these three dates except for any
changes recorded in part (a)?
Carrying amount
December 31, 2023
May 11, 2024
$
November 12, 2024
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F679e8cca-6cc5-491c-b9ef-49448ed093a5%2F7ba7f5a0-f8d7-433c-8734-07dfe1d43243%2F79i9pyo_processed.png&w=3840&q=75)
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