During August 2018 , Bingham Company recorded the following: bullet Sales of $ 68 comma 900 ($ 55 comma 000 on account; $ 13 comma 900 for cash). Ignore Cost of Goods Sold. bullet Collections on account, $ 45 comma 100. bullet Write-offs of uncollectible receivables, $ 1 comma 680. bullet Recovery of receivable previously written off, $ 300. Requirements 1. Journalize Bingham 's transactions during August 2018 , assuming Bingham uses the direct write-off method. 2. Journalize Bingham 's transactions during August 2018 , assuming Bingham uses the allowance method.

Question

Business

Kobe Morrow

3 March, 09:34

During August 2018 , Bingham Company recorded the following: bullet Sales of $ 68 comma 900 ($ 55 comma 000 on account; $ 13 comma 900 for cash). Ignore Cost of Goods Sold. bullet Collections on account, $ 45 comma 100. bullet Write-offs of uncollectible receivables, $ 1 comma 680. bullet Recovery of receivable previously written off, $ 300. Requirements 1. Journalize Bingham 's transactions during August 2018 , assuming Bingham uses the direct write-off method. 2. Journalize Bingham 's transactions during August 2018 , assuming Bingham uses the allowance method.

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Heidi Anderson · Answer 1

Direct Method

Aug

a

Dr Accounts Receivable 55,000

Dr Cash 13,900

Cr Sales 68,900

b

Dr Cash 45,100

Cr Accounts Receivable 45,100

c

Dr Bad Debt Expense 1,680

Cr Accounts Receivable 1,680

d

Dr Accounts Receivable 300

Cr Bad Debt Expense 300

Dr Cash 300

Cr Accounts Receivable 300

Allowance Method

a

Dr Accounts Receivable 55,000

Dr Cash 13,900

Cr Sales 68,900

b

Dr Cash 45,100

Cr Accounts Receivable 45,100

c

Dr Allowance for Doubtful debts 1,680

Cr Accounts Receivable 1,680

d

Dr Accounts Receivable 300

Cr Allowance for Doubtful debts 300

Dr Cash 300

Cr Accounts Receivable 300