At December 31, 2022, the trial balance of Waterway Industries contained the following amounts before adjustment. Debit Credit Accounts Receivable $185,100 Allowance for Doubtful Accounts $ 1,480 Sales Revenue 855,300 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,320 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,480 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,130 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Waterway Industries uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.

Question

Business

Caleb Long

3 May, 16:31

At December 31, 2022, the trial balance of Waterway Industries contained the following amounts before adjustment. Debit Credit Accounts Receivable $185,100 Allowance for Doubtful Accounts $ 1,480 Sales Revenue 855,300 (a) Prepare the adjusting entry at December 31, 2022, to record bad debt expense, assuming that the aging schedule indicates that $10,320 of accounts receivable will be uncollectible. (b) Repeat part (a), assuming that instead of a credit balance there is a $1,480 debit balance in Allowance for Doubtful Accounts. (c) During the next month, January 2023, a $2,130 account receivable is written off as uncollectible. Prepare the journal entry to record the write-off. (d) Repeat part (c), assuming that Waterway Industries uses the direct write-off method instead of the allowance method in accounting for uncollectible accounts receivable.

+5

Answers (1)

Know the Answer?

Destiney · Answer 1

Answer is given below.

Explanation:

a Bad debts expense 8840 = 10320-1480

Allowance for doubtful accounts 8840

b Bad debts expense 11800 = 10320+1480

Allowance for doubtful accounts 11800

c Allowance for doubtful accounts 2130

Accounts receivable 2130

d Bad debts expense 2130

Accounts receivable 2130