Question

The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31: June 8. Wrote off account of Kathy Quantel, $4,360. Aug. 14. Received $3,100 as partial payment on the $7,800 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible. Oct. 16. Received the $4,360 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash receipt. Dec. 31 Wrote off the following accounts as uncollectible (record as one journal entry): Wade Dolan $1,260 Greg Gagne 780 Amber Kisko 3,010 Shannon Poole 1,740 Niki Spence 480 Dec. 31 If necessary, record the year-end adjusting entry for uncollectible accounts. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0-30 days $209,000 3% 31-60 days 78,000 9 61-90 days 25,000 25 91-120 days 9,000 45 More than 120 days 13,000 85 Total receivables $334,000

Answer 1

Answer:

See journal entry below

Explanation:

June 8. Bad debt expense Dr. $4,360

To Accounts receivable - Kathy Quantel Cr. $4,360

Aug. 14. Bank Dr. $3,100

Bad debt expense Dr. $4,700

To Accounts receivable - Rosalie Oakes Cr. $7,800.

Oct. 16 Accounts receivable - Kathy Quantel Dr. $4,340

To Bad debts expense Cr $4,340

Cash Dr. $4,340

To Accounts receivable - Kathy Quantel Cr. $4,340

Dec. 31 Bad debt expense. Dr $7,270

To Account receivable - Wade Dolan

Cr $1,260

A/R - Greg Gagne

Cr $780

A/R - Amber Kisko

Cr $3,010

A/R - Shanoon Poole

Cr $1,740

A/R - Niki Spence

Cr $480