question archive Coffeldt Sign Company uses the allowance method in accounting for uncollectible accounts
Coffeldt Sign Company uses the allowance method in accounting for uncollectible accounts
Subject:AccountingPrice: Bought3
Coffeldt Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 4% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below: Net Credit Sales Accounts Receivable Allowance for Doubtful Accounts 12/31/19 $400,000 150,000 5,000 12/31/20 $450,000 200,000 ? Instructions: (a) Journalize the following events in 2020. Aug. 10 Sept. 12 Oct. 10 Determined that the account of Sue Lang for $1,000 is uncollectible Determined that the account of Tom Woods for $4,000 is uncollectible Received a check for $550 as payment on account from Sue Lang, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November Received a check for $450 from Sue Lang as payment on her account Nov. 15 (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2020.
