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Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)

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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Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not in manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit (To reinstate the account written-off and now determined to be collectible) (Collection on account) Credit
Transcribed Image Text:Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not in manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit (To reinstate the account written-off and now determined to be collectible) (Collection on account) Credit
Bridgeport Ltd. has an April 30 year end and follows IFRS. On April 30, 2023, Bridgeport's controller determined that 4% of its $417,000 accounts receivable balance would likely become uncollectible. The pre-closing credit balance in the allowance for expected credit losses was $5,000. On June 5, 2023, Bridgeport's controller wrote off a $3,900 account that was owed by Bright Construction after determining that this amount was not likely to be received. On October 30, 2023, after taking legal action against Bright Construction, Bridgeport received 25% of the previously written-off amount. Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
Transcribed Image Text:Bridgeport Ltd. has an April 30 year end and follows IFRS. On April 30, 2023, Bridgeport's controller determined that 4% of its $417,000 accounts receivable balance would likely become uncollectible. The pre-closing credit balance in the allowance for expected credit losses was $5,000. On June 5, 2023, Bridgeport's controller wrote off a $3,900 account that was owed by Bright Construction after determining that this amount was not likely to be received. On October 30, 2023, after taking legal action against Bright Construction, Bridgeport received 25% of the previously written-off amount. Prepare the necessary journal entries to record the above transactions. Assume that Bridgeport uses the allowance method for accounting for impairments of accounts receivable. (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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.)
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