On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500. Kingbird, Inc. estimates that 8% of its accounts receivable balance of $83.000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Kinkbird, Inc. determined that B. Jared's account was uncollectible and wrote off $1,200. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the (To reverse write-off) (To record collection of write-off)
On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500. Kingbird, Inc. estimates that 8% of its accounts receivable balance of $83.000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2022, Kinkbird, Inc. determined that B. Jared's account was uncollectible and wrote off $1,200. On June 12, 2022, Jared paid the amount previously written off. Prepare the journal entries on December 31, 2021, May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the (To reverse write-off) (To record collection of write-off)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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answer in text form please (without image), Note: .Every entry should have narration please
Transcribed Image Text:On December 31, 2021, when its Allowance for Doubtful Accounts had a debit balance of $1,500. Kingbird, Inc. estimates that 8% of
its accounts receivable balance of $83,000 will become uncollectible and records the necessary adjustment to Allowance for Doubtful
Accounts. On May 11, 2002, Kingbird, Inc. determined that B. Jared's account was uncollectible and wrote off $1,200. On June 12,
2022, Jared paid the amount previously written off.
Prepare the journal entries on December 31, 2021 May 11, 2022, and June 12, 2022. (Credit account titles are automatically indented
when amount is entered. Do not indent manually. Record journal entries in the
(To reverse write-off)
(To record collection of write-off)
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