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Can someone help me find the Bad Debt Expense and the Allowance For Uncollectible Accounts. Thanks?


The following events occur for The Underwood Corporation during 2010 and 2011, its first two years of operations.

June 12, 2010
Provide services to customers on account for $35,500.

September 17, 2010
Receive $12,000 from customers on account.

December 31, 2010
Estimate that 35% of accounts receivable at the end of the year will not be received.

March 4, 2011
Provide services to customers on account for $59,000.

May 20, 2011
Receive $19,300 from customers for services provided in 2010.

July 2, 2011
Write off the remaining amounts owed from services provided in 2010.

October 19, 2011
Receive $16,100 from customers for services provided in 2011.

December 31, 2011
Estimate that 45% of accounts receivable at the end of the year will not be received.



I just need help trying to figure out the Bad Debt Expense and the Allowance For Uncollectible Accounts for December 31, 2011

538 day(s) ago

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SteinS 		Riley,
We do this on a transaction by transaction basis.

6/12/2010 Debit accounts receivable ___________35,500
6/12/2010___Credit sales _______________________35,500

9/17/2010 Debit Cash________________________12,000
9/17/2010___Credit accounts receivable ____________12,000

12/31/2010 Debit Bad debt expense____________ 8,225
12/31/2010__Credit Allowance for Doubtful Accounts__8,225
___35% of 23,500. Accrue the allowance

3/4/2011 Debit Accounts Receivable____________59,000
3/4/2010 ___Credit sales_________________________59,000

5/20/2011 Debit Cash_________________________19,300
5/20/2011___Credit Accounts Receivable____________19,300

7/2/2011 Debit Allowance for Doubtful Accounts ____4,200
7/2/2011__Credit Accounts Receivable______________ 4,200

10/19/2011 Debit Cash________________________16,100
10/19/2011__Credit Accounts Receivable____________16,100

12/31/2011 Debit Bad Debt Expense_____________17,100
12/31/2011__Credit Allowance for Doubtful Accounts ___17,100
To accrue additional Allowance*

* Remember we already had a balance of 4,025. This accrues the difference between what was already written off and what we expect to write off.

Posted 538 days ago

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Question Title Can someone help me find the Bad Debt Expense and the Allowance For Uncollectible Accounts. Thanks?
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