Exercise 5-8 (LO 5-5) Requirement 1 December 31, 2024DebitCredit Bad Debt Expense7,900 Allowance for Uncollectible Accounts7,900 (Estimate future bad debts) ($7,900 = $60,000 x 15% − $1,100) Requirement 2 Bad debt expense$7,900 Allowance for uncollectible accounts$9,000* *$9,000 = $7,900 credit adjustment + $1,100 credit balance before adjustment Requirement 3 Total accounts receivable$ 60,000 Less: Allowance for uncollectible accounts(9,000) Net accounts receivable$ 51,000
Exercise 5-9 (LO 5-5) Requirement 1 December 31, 2024DebitCredit Bad Debt Expense28,100 Allowance for Uncollectible Accounts28,100 (Estimate future bad debts) [$28,100 =($130,000 x 20%)+ $2,100] Requirement 2 Bad debt expense$28,100 Allowance for uncollectible accounts$26,000* *$26,000 = $28,100 credit adjustment − $2,100 debit balance before adjustment Requirement 3 Total accounts receivable$130,000 Less: Allowance for uncollectible accounts(26,000) Net accounts receivable$104,000
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