FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

bartleby

Concept explainers

Question

bad debt expense?

Allowance for Doubtful Accounts
Dec. 31
16,260
Accounts Receivable-Wade Dolan
2,820
Accounts Receivable-Greg Gagne v
1,750
Accounts Receivable-Amber Kisko v
6,720
Accounts Receivable-Shannon Poole v
3,900
Accounts Receivable-Niki Spence
1,070
Bad Debt Expense
Dec. 31
Allowance for Doubtful Accounts
X
Feedback
Check My Work
c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method?
Higher v by
Feedback
Check My Work
Feedback
Check My Work
>
>
expand button
Transcribed Image Text:Allowance for Doubtful Accounts Dec. 31 16,260 Accounts Receivable-Wade Dolan 2,820 Accounts Receivable-Greg Gagne v 1,750 Accounts Receivable-Amber Kisko v 6,720 Accounts Receivable-Shannon Poole v 3,900 Accounts Receivable-Niki Spence 1,070 Bad Debt Expense Dec. 31 Allowance for Doubtful Accounts X Feedback Check My Work c. How much higher (lower) would Rustic Tables' net income have been under the direct write-off method than under the allowance method? Higher v by Feedback Check My Work Feedback Check My Work > >
b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $29,220 at the beginning of the year and
the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable:
Aging Class (Number
Receivables Balance
Estimated Percent of
of Days Past Due)
on December 31
Uncollectible Accounts
0-30 days
$468,000
3 %
31-60 days
175,000
61-90 days
56,000
25
91-120 days
20,000
55
More than 120 days
28,000
90
Total receivables
$747,000
June 8
Allowance for Doubtful Accounts V
9,740
Accounts Receivable-Kathy Quantel
9,740
Cash
Aug. 14
6,920
Allowance for Doubtful Accounts
10,510 V
Accounts Receivable-Rosalie Oakes
17,430
Accounts Receivable-Kathy Quantel v
Oct. 16
9,740
Allowance for Doubtful Accounts
9,740
Cash
Oct. 16
9,740
Accounts Receivable-Kathy Quantel
0 740
expand button
Transcribed Image Text:b. Journalize the transactions under the allowance method, assuming that the allowance account had a beginning balance of $29,220 at the beginning of the year and the company uses the analysis of receivables method. Rustic Tables Company prepared the following aging schedule for its accounts receivable: Aging Class (Number Receivables Balance Estimated Percent of of Days Past Due) on December 31 Uncollectible Accounts 0-30 days $468,000 3 % 31-60 days 175,000 61-90 days 56,000 25 91-120 days 20,000 55 More than 120 days 28,000 90 Total receivables $747,000 June 8 Allowance for Doubtful Accounts V 9,740 Accounts Receivable-Kathy Quantel 9,740 Cash Aug. 14 6,920 Allowance for Doubtful Accounts 10,510 V Accounts Receivable-Rosalie Oakes 17,430 Accounts Receivable-Kathy Quantel v Oct. 16 9,740 Allowance for Doubtful Accounts 9,740 Cash Oct. 16 9,740 Accounts Receivable-Kathy Quantel 0 740
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education