Allowance method It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period. Accounts receivable: Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business. Write-off: Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible. To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

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Answer 1

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:Oct. 2. Received $600 from Rachel Elpel and wrote off the remainder owed of $1,350 as uncollectible.Dec. 20. Reinstated the account of Rachel Elpel and received $1,350 cash in full payment.

Journalize the following transactions, using the allowance method of accounting for uncollectible receivables:Apr. 15. Received $800 from Jean Tooley and wrote off the remainder owed of $1,200 as uncollectible.Aug. 7. Reinstated the account of Jean Tooley and received $1,200 cash in full payment.

Journalize the following transactions using the allowance method of accounting foruncollectible receivables:Sep 1. Received $600 from Jane and wrote off the remainder owed of $1350 as uncollectible.Nov15.Reinstated the account Jane that had been written off on Sep 1 and received $1350 cash in full payment.

Answer 2

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 3

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 4

Question

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

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Answer 5

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 6

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

Answer 7

Chapter 8, Problem 8.2BPE

(a)

To determine

Allowance method

It is a method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

Accounts receivable:

Accounts receivable refers to the amounts to be received within a short period from customers upon the sale of goods and services on account. In other words, accounts receivable are amounts customers owe to the business. Accounts receivable is an asset of a business.

Write-off:

Write-off refers to deduction of a certain amount from accounts receivable, when it becomes uncollectible.

To journalize: The collection of $600 cash and write-off of Person RE’s $1,350 of remaining uncollectible accounts, using allowance method.

Answer 8

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 9

(b)

To determine

To reinstate: The account of Person RE and record the collection of cash on account.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Solution Summary: The author explains the allowance method for accounting bad debt expense, where uncollectible accounts receivables are estimated and recorded at the end of particular period.

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To reinstate: The account of Person RE and record the collection of cash on account.

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