134.The following journal entries would be used in one of the two methods of accounting for uncollectiblereceivables. Identify each.
(a)
Bad Debt Expense900
Accounts Receivable, Billings900
(b)
Allowance for Doubtful Accounts900
Accounts Receivable, Grover900
135.Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases and indicatethe ending balance in each case.
(a)Credit balance of $300 in Allowance for Doubtful Accounts just prior toadjustment. Analysis of Accounts Receivable indicates uncollectible receivables of $8,500.
(b)Credit balance of $500 in Allowance for Doubtful Accounts just prior toadjustment. Uncollectible receivables are estimated at 2% of credit sales, which totaled$1,000,000 for the year.
136.Journalize the following transactions using the allowance method of accounting for uncollectible receivables.
April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.
June 10 Received payment for one-third of the receivable from Jim Dobbs and wrote off the remainder.
Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.