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Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of operations for Pincus, so it had a $0 opening balance in its allowance for uncollectible accounts. During 2024, Pincus provided a total of $255,000 of services on account. In 2024, the company wrote off uncollectible accounts of $10,200. By the end of 2024, cash collections on accounts receivable totaled $214,200 Pincus estimates that 20% of the accounts receivable balance at 12/31/2024 will prove uncollectible Required: 1. What journal entry did Pincus record to write off uncollectible accounts during 2024? 2. What journal entry should Pincus record to recognize bad debt expense for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. View transaction list

Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of operations for Pincus, so it had a $0 opening balance in its allowance for uncollectible accounts. During 2024, Pincus provided a total of $255,000 of services on account. In 2024, the company wrote off uncollectible accounts of $10,200. By the end of 2024, cash collections on accounts receivable totaled $214,200 Pincus estimates that 20% of the accounts receivable balance at 12/31/2024 will prove uncollectible Required: 1. What journal entry did Pincus record to write off uncollectible accounts during 2024? 2. What journal entry should Pincus record to recognize bad debt expense for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field. View transaction list

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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Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of operations for Pincus, so it had a $0. opening balance in its allowance for uncollectible accounts. During 2024, Pincus provided a total of $255,000 of services on account. In 2024, the company wrote off uncollectible accounts of $10,200. By the end of 2024, cash collections on accounts receivable totaled $214,200 Pincus estimates that 20% of the accounts receivable balance at 12/31/2024 will prove uncollectible Required: 1. What journal entry did Pincus record to write off uncollectible accounts during 2024? 2. What journal entry should Pincus record to recognize bad debt expense for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 2 < 1 Record the entry to recognize bad debt expense for 2024. Note: Enter debits before credits Event 2 Record entry General Journal Clear entry Debit Credit View general Journal
Transcribed Image Text:Pincus Associates uses the allowance method to account for bad debts. 2024 was the first year of operations for Pincus, so it had a $0. opening balance in its allowance for uncollectible accounts. During 2024, Pincus provided a total of $255,000 of services on account. In 2024, the company wrote off uncollectible accounts of $10,200. By the end of 2024, cash collections on accounts receivable totaled $214,200 Pincus estimates that 20% of the accounts receivable balance at 12/31/2024 will prove uncollectible Required: 1. What journal entry did Pincus record to write off uncollectible accounts during 2024? 2. What journal entry should Pincus record to recognize bad debt expense for 2024? Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 2 < 1 Record the entry to recognize bad debt expense for 2024. Note: Enter debits before credits Event 2 Record entry General Journal Clear entry Debit Credit View general Journal
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